The Consumers Association of Bangladesh (CAB) on Sunday alleged that the government's tax concessions on 63 essential commodities under the national budget have yet to translate into lower retail prices, blaming weak market oversight and what it described as “double standards” by a section of traders.

In a statement, CAB Vice-President SM Nazer Hossain said the government had reduced source tax on a wide range of essential items, including rice, wheat, pulses, onions, garlic, ginger, edible oil, sugar, fish, livestock and poultry from 5 percent, 2 percent and 1 percent to 0.5 percent in a bid to lower import and marketing costs.

“Consumers were expecting the benefits of these tax cuts to be reflected in the retail market, but prices of many essential commodities have remained unchanged or even increased,” he said.

Nazer alleged that some traders raised prices immediately after the budget announcement, citing higher import costs of existing stocks, while prices of products on which duties had not been increased also went up.

He claimed that inconsistent pricing practices by traders, coupled with ineffective market monitoring by the authorities, have prevented stability in the essential commodities market.

The CAB leader also said the withdrawal of the 5 percent regulatory duty on imported spices and dates has yet to benefit consumers. Prices of several spices, including cinnamon, cloves, cardamom, poppy seeds, cashew nuts and almonds, remain high, while the impact of the tax relief on dates has not yet been felt in the market.

He criticised traders' argument that prices would decline only after new consignments arrive, saying such explanations undermine the purpose of tax concessions and deprive consumers of the intended benefits.

Referring to the government's post-budget commitment that prices of tax-relieved products should come down, Nazer said there has been little visible progress so far.

He urged the district administration, the Directorate of National Consumer Rights Protection and other market monitoring agencies to intensify oversight to ensure that tax reductions are passed on to consumers.

“The success of the government's people-friendly budget will ultimately depend on whether ordinary consumers receive its intended benefits,” Nazer added.