Bangladesh lowers duty on diesel, rice imports

The Bangladesh authorities have reduced the duty on imports of diesel and rice amid an energy crisis and a price rise of staples.

The finance ministry on Sunday cut the duty on diesel import to 5 percent from 10 percent.

It also waived advance tax on diesel imports.

For rice imports, the National Board of Revenue said, the regulatory duty will be 5 percent instead of 25 percent.

All import duties on boiled rice and unboiled Atap rice have also been waived.

The measures will remain in force until Dec 31, 2022.

Officials said traders have been paying 62.5 percent duty on rice imports until now.

With advance tax and tax at source, a rice importer will now pay 15.25 percent taxes.

NBR officials said taxes for diesel imports have been reduced by 11.25 percentage points to 22.75 percent.

“Maybe the decisions have been taken to control inflation or ensure food security,” said Masud Sadiq, a member of the NBR.

The government recently raised fuel oil prices, saying it needs to cut subsidies for the energy sector amid high prices in the international market.

The price of diesel had been increased by 42.5 percent to Tk 114 per litre.

As transport costs went up due to the fuel oil price hike, traders raised prices of all commodities.

Rice prices have increased by at least Tk 10 per kg. Coarse varieties of rice are being sold at around Tk 60 while fine varieties cost around Tk 75 to Tk 90.