As part of the tariff rationalization efforts, the budget proposal for the fiscal year FY2023-24 includes the withdrawal of regulatory duty and supplementary duty on 191 categories of apparel and 234 categories of fish imports, respectively.
Finance Minister AHM Mustafa Kamal read out the proposals for the 2023-2024 fiscal year in parliament on Thursday.
The minister said as part of the phased withdrawal of regulatory duties and supplementary duties, certain products had been selected in such a way that withdrawing duty on those would not affect the protection of the domestic industry; they would not be able to compete with local products even if they were imported into Bangladesh; did not have a strong demand in the country; and would have little or no impact on revenue.
This move will result in a partial reduction in the cost of importing garments and fish. However, since these sectors do not contribute significantly to revenue generation, National Board of Revenue (NBR) sources mentioned that the overall impact on revenue would be minimal.
Currently, apparel imports are subject to a 3% regulatory duty, while fish imports attract a 20% supplementary duty in most cases.
There have been ongoing discussions regarding the future of tax rates on imported goods in Bangladesh, especially after the country's transition from the Least Developed Country (LDC) status in 2026. In light of this, various parties have suggested reducing customs duties on imported goods.
