Bangladesh lifts import duties on onions to cool prices

DHAKA : Bangladesh’s tax authority said on Thursday it had withdrawn a 5 per cent regulatory duty on onion imports and had reduced import duties on potatoes and pesticides in an effort to alleviate price pressures.
The move comes in response to soaring prices following recent floods and disruptions caused by mass protests that led Prime Minister Sheikh Hasina to resign and flee to India on Aug. 5. An interim government, led by Nobel Peace Prize laureate Muhammad Yunus, has since replaced Hasina’s administration.
The National Board of Revenue (NBR) has lowered the import tax on pesticides from 25 per cent to 5 per cent, while also eliminating all regulatory tax and VAT on these imports. The duty on potatoes has been reduced from 25 per cent to 15 per cent, with a 3 per cent regulatory duty also being withdrawn.
The NBR said transport of goods was disrupted in July and August due to the mass protests and has yet to return to normal.
Flooding in eastern regions further exacerbated the situation, prompting ministries and import partners to call for price relief on essential goods, it said in a statement.
The tax reductions, which will remain in effect until Nov. 30, aim to stabilise prices and encourage farmers to increase local production of potatoes and onions, while keeping essential items affordable for consumers.
Inflation reached 11.66 per cent in July, the highest since September 2011, from 9.72 per cent the previous month, according to official data.