Govt's seven-fold import duty hike on Kutchi 'Dates' halts import
The government has increased the import duty on Gujarat's Kutchi Khaarek (Dates) seven-fold from Tk13.27 per kg to Tk106.17, leading to a halt in imports as rising prices have rendered people unable to afford the sweet fruit, reports The New Indian Express.
This substantial rise in import tax has led Gujarati exporters to stop exporting over 600 tonnes of Khaarek annually from Kutch to Bangladesh, leaving farmers burdened with an oversupply of stock.
"We buy Khaarek from Kutch and export it to Bangladesh, Concerning the tax imposed by Bangladesh on Khaarek, it was 10.83 paise in 2021, and 33 rupees in 2022, but all of sudden in 2023, the Bangladesh government Announce 64.50 rupees in new budget, Soon After a week, the tax was raised to 80 rupees," said Jamal Shaikh, a Kutchi Khaarek exporter in Calcutta.
Keep updated, follow The Business Standard's Google news channel
He added, "In this case, we were paying 3.5 lakh rupees [Tk4,65,812] in tax in 2022 on a full truck of Khaarek, 6.5 lakh rupees [Tk8,65,080] in 2023, and 8.5 lakh rupees [Tk11,31,259] after that week."
He explained that Bangladeshi importers are afraid of doing business in such a situation as it will drive up the selling cost dramatically, which will repel buyers.
"As a result, Bangladeshi traders have ceased purchasing Khaarek," Jamal said.
