Buyers again boycotted the Bangladesh tea auction on Tuesday in protest against a new tax and none was sold for a second week, leading brokers to warn of a lasting impact on the sector. "Buyers decided to stay out as no clarification has been received in regard to the newly imposed .. tax at source at 5 percent on the price of tea at the auctions," said the National Brokers Ltd, the largest tea broking firm in the country.
More than 1.5 million kg of tea was on offer at the auction in Chittagong port city but there were no buyers, said an official at the National Brokers. "All the teas remained unsold once again." Brokers and traders say the boycott, the first of its kind, is likely to continue unless regulators step in quickly to resolve the dispute, and could have a lasting impact on the country's tea sector. "Imposition of 5 percent tax is very high. And small buyers can't afford it. It will simply eliminate them," said M. Saiful Islam, Managing Director at the National Brokers.