Staff Reporter :
The National Board of Revenue (NBR) has decided to gradually rationalise and bring under the bound rate, by 2026, around 60 tariff lines where the combined customs duty and other duties and charges exceed the bound tariff rates.
An official government document on the midterm macroeconomic policy statement outlines this move, stating that Bangladesh is preparing for its transition from Least Developed Country (LDC) status, scheduled for 2026.
The document highlights that a strategy has been developed to gradually reduce import tariffs where applicable, balancing the interests of domestic industries while enhancing the competitiveness of export products.
Key measures include reviewing Bangladesh’s tariff schedule at the World Trade Organization (WTO), bringing customs duties within the agreed bounds, phasing out minimum import prices, and streamlining Supplementary Duties (SD) and Regulatory Duties (RD).
As part of these efforts, the NBR has already undertaken an exercise to reduce customs duties on six items to align Bangladesh’s tariff regime with its WTO commitments.
The government has also decided to abolish minimum import prices, with plans to phase them out completely by 2026.
Rather than implementing drastic cuts, the government will rationalise customs duties and other charges gradually to mitigate potential adverse effects on local industries and revenue mobilisation.
For the fiscal year 2024, the government has removed SD and RD on 191 and 234 products, respectively.
Furthermore, SD and RD on intermediate goods will be phased out over the next three financial years.
The National Tariff Policy 2023, which came into force in August 2023, aims to improve the competitiveness of local companies in the international market.
This policy is being implemented progressively and is designed to rationalise Bangladesh’s tariff structure in compliance with WTO rules, promote export diversification, and facilitate free trade agreements with key trading partners.
In terms of fiscal strategy, the government plans to reduce its reliance on trade taxes, shifting towards a greater focus on direct taxes and VAT in the medium to long term.
Lowering dependence on import taxes is expected to reduce the anti-export bias of the country’s trade policy, with the anticipated revenue loss from tariff rationalisation likely to be offset by the strong growth of local businesses.
Bangladesh is set to graduate from its LDC status on November 24, 2026, a decision made by the UN General Assembly in 2021.
