Bangladesh Reduces Import Tariffs on Essentials to Combat Rising Costs Before Ramadan

The government of Bangladesh has taken significant steps to alleviate the rising costs of essential commodities by reducing import tariffs and taxes on key items such as rice, sugar, and dates, ahead of the fasting month of Ramadan. This decision, as detailed in a notification issued by the National Board of Revenue (NBR), aims to bolster supply and stabilize prices during this critical period.

According to the notification, the customs duty on rice imports has been completely removed, where it was previously set at 25 percent. Additionally, the regulatory duty on rice has been dramatically reduced from 25 percent to just 5 percent. This adjustment is expected to lower the retail prices of rice, making it more affordable for consumers.

In further efforts to moderate the cost of living, the NBR has also eliminated the Value Added Tax (VAT) on edible oil, a staple in Bangladeshi cooking. Moreover, the specific duty on the import of raw sugar has seen a reduction, now set at Tk 1,000 per tonne compared to the former rate of Tk 1,500 per tonne.

Import duty on dates, which are extensively consumed during Ramadan for breaking the fast, has also been adjusted. The duty has been reduced from 25 percent to 15 percent, a move likely to be welcomed by consumers during the holy month.

These fiscal policy adjustments by the NBR are effective immediately and are part of a broader strategy to ensure that essential goods are both accessible and affordable to the populace during Ramadan, a time when demand for such items traditionally increases. The government hopes that these measures will help prevent a price spiral, thus aiding in maintaining economic stability and supporting the general populace in observing their religious practices with fewer financial constraints.

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