The government has halved the customs duty on the import of sugar to improve the supply of sugar and contain the soaring prices of the essential commodity.
Importers now have to pay Tk1,500-Tk3,000 as customs duty on import of a tonne of sugar along with the other duties.
Previously, the duty was Tk3,000- Tk6,000 a tonne.
Customs wing of the NBR issued a statutory regulatory order in this regard on Tuesday, saying that importers would be allowed to enjoy the reduced customs duty on import of sugar till March 31, 2024.
Under the SRO, the NBR has reduced the customs duty against the import of raw sugar, beet sugar and cane sugar to Tk1,500 a tonne.
Customs duty on import of other sugar under the harmonized system codes of 1701.99.00 is Tk3,000 for tonne.
Along with the customs duty, sugar importers have to pay 15% value-added tax, 5% advance tax and 30% regulatory duty.
Besides, 2% advance income tax on cane sugar and 5% advance tax on other sugar are also applicable.
The NBR cut the duties as the commerce ministry requested the revenue board to cut the import duties on sugar.
The country’s sugar market has been volatile since January.
The prices of both packaged and unpackaged sugar have increased by 20.45% to Tk135 and Tk130 a kilogram respectively from Tk115 and Tk105 over the year.
On June 22, the Bangladesh Sugar Refiners Association increased the price of sugar to Tk140-150 a kilogram as the price of the raw sugar increased on the global market.
On August 13, the BSRA cut the prices of packaged and unpackaged sugar to Tk135 and Tk130 respectively.
The Commerce Ministry asked the NBR to further rationalize duty rates imposed on September 13, 2023.
According to the Bangladesh Trade and Tariff Commission, the annual consumption demand for sugar in Bangladesh is 2 to 2.2 million tonnes.
The country annually imports some 2.2-2.4 million tonnes of raw sugar and some 50,000 tonnes of refined sugar, according to the BTTC.
Only 1.5% of the country’s demand is met with locally produced sugar.