Delhi to pay fee, not duty, for transit: Muhith
Finance Minister AMA Muhith on Tuesday said a certain fee, not duty, will be charged for providing transit facility to India for transporting their goods through Bangladesh.
They will use our facilities and those involve some cost for the government. So, well have to take something; it may be called fee or anything, he told reporters after holding a meeting with an IMF delegation at the Finance Division.
David Cowen, mission chief of the International Monetary Fund, led the six-member delegation.
Economic Affairs Adviser to the prime minister Dr Mashiur Rahman, Bangladesh Bank Governor Dr Atiur Rahman and Finance Division Secretary Dr Mohammad Tareq were, among others, present on the occasion.
The finance minister, however, said no duty could be imposed on allowing transit. If we charge duty, why then allow the transit?
He said a certain fee is to be taken for allowing transit as the government provides various facilities like roads, railways and waterways.
Muhith said the government is going to formulate a guideline to determine the transit fee. There is currently a protocol for realising fee only for waterways and railways.
He informed that realisation of duty will remain stopped until a guideline is formulated. Rules for realising transit fees are yet to be formulated, he said.
Asked about the oppositions reservation on transit, the finance minister said they had just overruled it. Ours is a transit country; no matter who believes or doesnt believe this. Well remain a transit country as geographically we are a transit country.
About the meeting with the IMF delegation, Muhith said they have discussed seeking support from the IMF under its Extended Credit Facility (ECF).
Under the ECF facility, he said the terms and conditions are easy and flexible and the credit with a grace period of over five years does not bear any interest.
The finance minister, however, admitted that the country has a balance of payment problem. We are looking forward to meet the gap and for this we will have to take some cash credit as our import is increasing, he said.
Asked to know the IMFs view on the politically appointed directors in the state-owned commercial banks, Muhith said they have briefed the delegation on the issue.
He, however, said, These are not the issues; the issues are domestic resource mobilisation, power generation, cost and subsidy.
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Delhi to pay fee, not duty, for transit: Muhith