The National Board of Revenue (NBR) on Wednesday lessened the regulatory duty on both refined and raw sugar imports by 50 percent to stabilize the local market prices, reports UNB.
The duty has been cut from 30 percent to 15 percent, and it will be effective immediately.
NBR explained that this measure is intended to make sugar prices more bearable for consumers.
It pointed out that various global and domestic factors have contributed to the recent rise in the prices of daily essentials, including sugar. Due to the global war, political unrest, and the significant devaluation of the Bangladeshi currency, prices of several essential goods have escalated. Items such as baby food are also becoming increasingly unaffordable for the common man, NBR noted.
It further said that recent student protests and the ongoing flood situation have added additional pressures, driving prices of essential items even higher.
As a result of the 15 percent reduction in regulatory duty, the customs duty on raw sugar now stands at Tk 11.18 per kg, while refined sugar is taxed at Tk 14.26 per kg at the import level.
The NBR expects the price of sugar to decrease by a similar amount at the consumer level.
The NBR also expressed hope that lowering the customs duty will discourage sugar smuggling through illegal channels and boost legal imports.
According to the available data, the annual consumption demand for sugar in Bangladesh is 2 to 2.2 million tonnes where only 1.5 per cent of the country’s demand is met with locally produced sugar.
Meghna Group of Industries (MGI) and City Group are the two main importers of sugar followed by S Alam Group, Abdul Monem Ltd, and Deshbandhu Sugar Mills.
At present, these five private sugar mills import more than 98 percent of the country's annual demand for refined sugar, whereas the raw sugar mostly sourced from Brazil.
Bd-Pratidin English/ Afsar Munna
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