Page 56 - ICE BUSINESS TIMES February 2020

High Import Duty Under
Scrutiny
The report also blamed the high cost of
products on the local market on the
foreign trade policy. It stated the prices
in the domestic market is not consistent
with the international market. Due to
high import tariffs, people in Bangladesh
had to spend $14,223 million extra on
products in 2017. Import duty in
Bangladesh is on average 25.64 per
cent, which is much higher than in other
South-East Asian countries having 4.73
per cent import duty in 2016. To supply
products at affordable prices, Ghulam
Rahman believes that a reduction in
import duty should be considered.
For too long, residents of Dhaka have
been burdened with the rising cost of
living. Far too many people are unable to
afford the basic amenities required to
sustain life. We deserve better than this,
and the first step towards a solution is
believing in that. Bigger and more
Methodology expensive cities have been able to put a
leash on its rising costs. Success stories
The report was devised based on are all around us. What we require is the
data on 4 food items, 22 essential willingness and patience to see things
commodities and 14 services. through. The actions which are needed
Concurrently, the samples of the have been already advised countless
study were collected from fifteen times by organisations like the CAB and
retail markets across Dhaka city. Centre for Policy Dialogue (CPD).
The objective of the study was to While devising policies, the priority
calculate the aggregate cost of should be the middle- and low-income
living in Dhaka city by taking into segment. More emphasis should be
account the expenditure incurred given in installing the proper market
by a family to purchase basic mechanism to regulate price surges.
amenities. However, the expenses There should be a select oversight
incurred in acquiring education committee to carry out a contingency
medical services and plan when there is a sudden shortage of
communication have not been essential goods like onion and garlic.
included in the report.
Effective measures must be taken to
control rising house rent, a coordinated
Consumers Under the Pump Surging House Rent effort of all the development authorities
According to CAB, the dramatic rise in the price of onions The CAB report also concluded, Rising Utility Bills which includes 12 city corporations and
at the end of the year had an adverse effect on the cost of lower-income and the Since the proliferation of quick rentals, power prices the 328 municipalities is required to
living as it is a staple food for most Bangladeshi lower-middle-income segment of the have surged astronomically. Subsequently, the ensure maximum effectiveness. This
households. However, prices of other essentials such as population had to spend more money authorities have raised bulk power prices seven times, time the priority should be the middle-
garlic and ginger showed a downward trend. The primary on rent as it rose significantly retaining power prices nine times. The rising tariff has and low-income segment. More
reason for the hike in the cost of living is the rise in the compared to their counterparts. On the put significant pressure on living expenses and had emphasis should be given in building
prices of several essential items, including flour, eggs and other hand, house rent for the severe consequences on their affordability. There is also affordable and rental housing instead of
vegetables. Over the year, vegetable prices rose by 8.13 per high-income category dropped a severe lack of oversight in the liquefied petroleum gas allotting plots which have proved
cent on average. People had to spend more on fish, marginally. Statistically, the house rent (LPG) market. In spite of having numerous private ineffective time and time again.
powdered milk and pasteurised milk. According to the CAB of lower and lower-middle-income companies competing for market share, consumers' Concurrently, foreign trade policy must
President, Ghulam Rahman, "The rise in prices of edible groups' rose 8.18 per cent on average, rights protection could not be maintained due to a be restructured to ensure the general
oil, sugar, onions, eggs and vegetables at the beginning of cost increased 9.74 per cent for shortage of supply against demand. To provide consumers are not burdened with excess
the year as an alarming sign, the market for vital goods shanties and 7.91 per cent for mess consumers with some respite, the CAB suggests fixing tariffs. A lot can be achieved if we reject
has not yet come under the control of the government". accommodation. higher prices and mentioning them on the cylinders. the demeanour of "anything goes".

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