Bangladesh Trade and Tariff Commission proposes to reduce import duties on sugar to combat smuggling
The Bangladesh Trade and Tariff Commission has recommended reducing sugar import duties from 30% to 15% to curb smuggling and lower domestic prices. Due to high import taxes, legal sugar imports have dropped, leading to increased smuggling. The commission suggests this reduction would boost legal imports, stabilize prices, and not result in government revenue losses. Enhanced border surveillance is also recommended to manage illegal imports and ensure market stability.
The Bangladesh Trade and Tariff Commission has recommended lowering sugar import duties to reduce smuggling and bring down domestic sugar prices.
According to the Bangladeshi media, high import duties has led to a decrease in legal sugar imports and a surge in smuggling.
To address this issue, the commission has urged the National Board of Revenue to reduce import duties and increase surveillance along the borders to stop the illegal flow of sugar.
According to a report from the Tariff Commission sourced from the commerce ministry, Bangladesh imported an average of 18.43 lakh tonnes of raw sugar annually over the last five years. However, in the fiscal year 2023-24, the country imported 4.57 lakh tonnes less than this average, while refined sugar imports declined by by 13,000 tonnes. Though there is a decline in legal imports the availability at the market is stable and hence is most likely through filling the gap from smuggling, reported The Business Standard.
In this context, the commission’s review suggests that lowering the current 30% regulatory duty (RD) on sugar imports to 15% would not lead to a loss of revenue for the government from this sector. Furthermore, the commission has advised that law enforcement and other relevant agencies should be directed to enhance surveillance in border areas to manage informal sugar imports.
The commission pointed out that while global price changes and currency fluctuations are beyond the government’s control, reducing taxes on sugar imports could help lower prices in Bangladesh, reduce smuggling, and increase legal imports.
“If import duties are lowered, sugar prices in the local market will fall, and at the same time, the government will earn more revenue from increased imports,” said Taslim Shahriar, deputy general manager of Meghna Group of Industries.
Recommended for you
