Published : 21 Oct 2024, 04:11 AM
Updated : 21 Aug 2026, 11:59 AM
To help maintain affordable rice prices in the current high-price market, the National Board of Revenue, or NBR, has lowered the import and regulatory duties on this staple food item in Bangladesh.
On Sunday, a notification was issued announcing the removal of the advance tax on rice imports.
The new measures state that the import duty on rice has been reduced from 25 percent to 15 percent, while the regulatory duty has decreased from 25 percent to 5 percent. Additionally, the 5 percent advance tax has been completely eliminated.
In a press release, the NBR indicated that these duty and tax reductions will lead to a drop in the import price of rice by Tk 14.40 per kilogramme.
"The NBR expects that lowering import and regulatory duties, along with the removal of the advance tax, will boost rice supply in the market, safeguard food security for the country's large population, and make rice prices affordable for the common people."
The rice market has been on the rise for two months, with prices for all varieties increasing by Tk 5 to Tk 6 per kg over the past month.
In response to this situation, the food ministry contacted the NBR at the end of September, requesting an increase in private sector rice imports.
The letter said the goal for the current Boro season is to collect 500,000 tonnes of paddy and 1,470,000 tonnes of rice to increase food reserves and encourage farmers. As of Aug 31, a total of 296,970 tonnes of paddy and 1,255,497 tonnes of rice have been purchased.
Currently, the government warehouses contain 1,264,740 tonnes of rice and 463,928 tonnes of wheat, totalling 1,754,199 tonnes of food grains.
Recently, severe floods affected 14 districts, damaging Aush and Aman seedlings as well as Aman seedbeds. In its letter, the food ministry expressed concerns that rice prices could rise despite increased demand.
As a result, a request was made to reduce the existing import duty on rice from 62.50 percent (which includes a 25 percent customs duty, 25 percent regulatory duty, 5 percent advance income tax, 5 percent advance tax, 1 percent insurance, 1 percent landing charge, and 0.5 percent DF VAT) to a 5 percent regulatory duty.
In an effort to boost supply and control prices, the NBR has previously granted duty exemptions on the imports of edible oil, sugar, and eggs.
