NBR relaxes duty on air purifier import amid widespread air pollution
As a result of this exemption, the total tax burden on air purifier imports has been reduced from 58.60% to 31.50%
The National Board of Revenue (NBR) has decided to reduce the existing customs duty (CD) on air purifier imports and completely withdraw regulatory duty (RD) and advance tax (AT) in view of the country's current air pollution situation.
A notification was issued in this regard yesterday (20 January), reducing the CD on air purifier imports from 25% to 10% and exempting them from paying 3% RD and 5% AT.
This exemption has reduced the total tax burden on air purifier imports from 58.60% to 31.50%.
Currently, Dhaka and other cities in Bangladesh are among the top cities in the world for air pollution. This air pollution is causing widespread damage to public health and huge financial losses to the people, reads the notification.
In such circumstances, it said, the NBR has decided to reduce customs duty at the import level to combat the harmful effects by making effective air pollution control equipment like air purifiers affordable and easily available.
This move will reduce the import cost of each air purifier by Tk1,500 to Tk7,000 depending on the type.
Air purifiers are mainly used to improve indoor air quality for health reasons. Recently, imports have increased due to growing concerns about air quality in the country.
The NBR believes that the widespread use of air purifiers will help prevent the adverse effects of air pollution on public health, read the notification.
Industry insiders have reported that air purifier prices currently range between Tk15,000 and Tk75,000, depending on quality. Following the tax reduction, prices are expected to decrease significantly, according to NBR officials.
However, experts argue that the tax cut will mainly benefit a small portion of society and will not significantly improve public health overall.
Prof Ahmad Kamruzzaman Majumder, founder and director of the Center for Atmospheric Pollution Studies (CAPS), told The Business Standard, "Air purifiers are mostly accessible to affluent groups. Reducing taxes for this group will not bring meaningful improvements to public health."
Prof Ahmad, a well-known air and noise pollution specialist, added, "Rather than focusing on air purifiers, effective measures should be taken to address the root causes of air pollution."
However, he noted, "If the tax benefit is specifically given to air purifiers used for medical purposes, it would be acceptable."