The Union government is considering waiving off goods and services tax (GST) on products sold at the marketplace on the zero line of the Indo-Bangladesh border to further strengthen the economic ties between the two countries as Bangladesh has surpassed Hong Kong to become India’s fourth-biggest export destination, said people aware of the development.
For a formal approval, the matter will be placed in the 45th meeting of the GST Council in Lucknow on September 17, two people aware of the matter said, requesting anonymity.
“The move is reciprocal as Bangladesh does not impose any tax on the border ‘haat’ (market) limited to about four dozen vendors, catering to local needs in that remote area. Besides, it has no significant revenue implications,” said one person, who works in an economic ministry.
At present, there are four operational ‘haats’ along the India-Bangladesh border. Two of them are located in Meghalaya and two are located in Tripura.