The National Board of Revenue (NBR) of Bangladesh has implemented a reduction in import taxes on onions, potatoes, and pesticides, targeting a stabilization in their market prices. This fiscal adjustment, detailed in a recent press release, is slated to remain active until 30 November 2024. The adjustments were disseminated through three gazette notifications by the customs wing.
In a strategic move, the NBR has eliminated the 5.0 per cent regulatory duty previously applied to onion imports. Furthermore, it has revised the customs duty on onions and potatoes, bringing it down from 25 per cent to 15 per cent. Additionally, a 5.0 per cent customs duty has been established for pesticide imports.
This decision was influenced by appeals from various stakeholders and government bodies, who highlighted the adverse effects of recent floods and the disruption of supply chains due to student-led mass protests. The NBR's initiative aims to mitigate these impacts while considering the role of local farmers in the supply of these commodities. The statement from the NBR acknowledges the importance of supporting local agriculture and ensures that the tax reductions are temporary, to prevent discouraging local production.
With a focus on long-term agricultural sustainability, the NBR expresses optimism that these tax adjustments will contribute to the price stabilization of onions and potatoes in the domestic market.
Source: The Financial Times