Rice import duty withdrawn keeping 2 percent advance income tax

Duty reduction lowers costs by Tk 9.60, boosting market supply

The National Board of Revenue, or NBR, has withdrawn all duties and taxes on rice imports, retaining only a 2 percent advance income tax on imports of Bangladesh's staple food.

This move follows rising rice prices driven by supply disruptions from floods, unrest, and political changes.

A Thursday notification from NBR confirmed the removal of the 15 percent import duty and the 5 percent regulatory duty on rice.

Additionally, the advance income tax was reduced from 5 percent to 2 percent, effective Friday.

This duty reduction lowers rice import taxes from 25 percent to just 2 percent, which is expected to reduce import costs by Tk 9.60 per kg and improve market supply.

The NBR anticipates this will help maintain affordable rice prices for consumers.

Previously, rice imports faced a total tax burden of 62.5 percent, including import duty, regulatory duty, and advance taxes.

On Oct 20, the revenue board issued a notification with significant duty reductions, but the move drew lukewarm response from businesses.

As a result, the Bangladesh Trade and Tariff Commission, or BTTC, recommended the complete removal of all duties on rice imports. NBR further reviewed and decided to remove the remaining import duties to increase rice availability and stabilise prices.