Baby formula may become expensive, as the customs duty on food preparations for infants and children has been raised from 5% to 15%, increasing the burden on parents.
Mysha, a first-time mother, began supplementing her breast milk with baby formula when her daughter was four months old, after realizing that breastmilk alone was not meeting her baby’s nutritional needs.
Similar to Mysha’s daughter, approximately 40% of infants under the age of six months in Bangladesh are either partially or exclusively fed with baby formula, according to the Bangladesh Demographic and Health Survey 2022.
Shaoly Mostofa, a teacher by profession, expressed her frustration over the recent hike in duty on raw baby food, saying it is straining her ability to manage household expenses.
“Every baby item is already expensive,” she said.
“It takes a lot—baby food, diapers, Cerelac, and more—to care for a child. Sometimes babies don’t even eat properly, so there’s a lot of waste. We end up needing to buy extra just to keep up. With the new tax and rising prices, I honestly don’t know how I’ll manage it all.”
“Raising a baby is already costly,” Mysha said, echoing similar concerns. “With the increased duty on baby formula, it’s going to get even harder.”
The concerns are not limited to individual households; industry players are also sounding the alarm.
Currently, three companies in Bangladesh import raw materials for infant and children’s food preparations.
One of the major importers, Nestlé Bangladesh, expressed concern that the price of the finished product could rise by around 10% due to the increased customs duty.
Debabrata Roy Chowdhury, Director of Legal and Company Secretary of Nestlé Bangladesh, told Dhaka Tribune: “Unless the duties are reinstated to their original levels, this steep hike will escalate consumer prices amid soaring inflation.”
He warned that it could endanger thousands of children’s lives and potentially increase mortality rates, as families turn to cheaper and non-recommended substitutes like full cream milk powder or cow’s milk.
“The impact of this duty increase is expected to sharply reduce consumption, which may ultimately result in a decrease in overall government revenue from customs duties, VAT, and income taxes,” he added.
Md Raich Uddin Khan, First Secretary of Customs (Policy) at the National Board of Revenue (NBR), told Dhaka Tribune: “We are trying to bring all products under the same duty spectrum.”
“Our goal is to build a business sector that promotes investment, reduces expenditure, and increases our tax-to-GDP ratio,” he added.
He also noted that the NBR is working to minimize exemptions in order to boost tax revenue generation.
