Business Report :
The National Board of Revenue (NBR) has reduced taxes on the import of onions and potatoes to boost supply and curb the rising prices of these essential items.
The customs administration lifted the tariffs on onion imports to 5 percent and on potatoes to 15 percent, effective until November 30.
“The NBR expects that the prices of both items will reach more tolerable levels following the reduction in import duties,” said the revenue authority in a statement on Thursday.
The Bangladesh Trade and Tariff Commission (BTTC) urged the NBR last week to significantly cut import duties on onions, potatoes, and eggs, as it will encourage imports and enhance the supply of these staples.
The BTTC recommended the complete removal of import duties on onions and a reduction in tariffs on eggs and potatoes to 5 percent.
However, the NBR has not yet reduced import tariffs on eggs.
With the new duty reduction, importers will pay only a 5 percent customs duty on onions.
For potato, one of the most popular vegetables in the country, importers will be required to pay 15 percent, along with a 5 percent advance income tax and a 3 percent regulatory duty.
The BTTC noted in the letter that recent flooding in the eastern part of the country has severely impacted poultry farming in 11 districts, leading to an egg supply shortage.
Additionally, potato production has fallen by 1.2 million tonnes, contributing to the high prices of this staple vegetable.
The BTTC emphasised that substantial cuts on these essential items will help contain inflation.
In addition, the NBR has reduced tariffs on pesticide imports from 25 percent to 5 percent to increase the supply of crop protection chemicals.