Photo : Messenger
Former National Board of Revenue (NBR) Chairman Abdul Majid said while reduced imports save foreign currency and help mitigate inflation, they do not contribute to increasing reserves.
Simultaneously, he said, product modifications have an impact on revenue collection.
The primary reason behind the decrease in import duty collection is the reduction in imports caused by the dollar crisis. The government took measures to control imports in order to stabilise reserves, he viewed.
While talking to The Daily Messenger on the decline in imports, the ex NBR boss said, "A decrease in imports has a significant impact on the entire economy. While it conserves foreign currency, it can hinder manufacturers' ability to import machinery and raw materials, thus affecting production."
As a result, the country's exports have also declined, which, in turn, affects the overall reserves. Additionally, domestic employment opportunities have not been created, and banks are grappling with the dollar crisis, he noted.
Since the Bangladeshi economy heavily depends on imports, Majid thinks, a decrease in imports can have a cascading effect on all aspects of the economy. If the government is unable to collect the expected amount of revenue, it will face challenging times.
The government during the Russia-Ukraine war-related dollar crisis in last February implemented various measures to discourage imports, including raising regulatory duties on luxury goods in four sectors to control imports.
Messenger/Disha
