Sugar duty reduced, prices may drop by Tk14

The National Board of Revenue (NBR) has halved the existing regulatory duty on sugar imports, reducing it to 15%.

The import tax on unrefined sugar has been reduced by Tk11.18 per kilogram, and on refined sugar, it has been reduced by Tk14.26 per kilogram, the NBR said in a press release issued on Wednesday (9 October).

Due to global conflicts, political instability, devaluation of taka, the recent student uprising, and flood, the prices of certain essential commodities, including baby food, have surged. In response to this, the NBR, after analysing the overall situation, has taken the initiative to help stabilise the market price of sugar by reducing the existing regulatory duty on both unrefined and refined sugar from 30% to 15%, said the release.

The agency expects this reduction to reflect in retail prices in the market.

A senior official from the relevant NBR department told The Business Standard, "Currently, the customs duty on importing each ton of sugar is Tk3,000. Additionally, there is a 30% regulatory duty [now reduced to 15%], as well as a 15% value-added tax [VAT], and a 5% advance tax."

According to the NBR's order, this decision was to take effect from 8 October.

Furthermore, the NBR believes that this move will discourage illegal sugar smuggling and encourage legitimate imports.

The Bangladesh Trade and Tariff Commission, under the Ministry of Commerce, recently sent a letter to the NBR, requesting a reduction in the duty of sugar.