Cracks down on luxuries
Industry Desk: Regulatory duties up to 20 percent have been imposed on the imports of luxury goods, including fruit, flowers, furniture and cosmetics, in an effort to bolster foreign exchange reserves.
The National Board of Revenue issued a notice on Monday, imposing the increased duty on products under 24 HS codes, a numeral method to categorise trade products.
The duties take effect from Monday, NBR said.
Previously, import duties on such products were as low as 0-3 percent.
Amid uncertainty on the global market due to the pandemic and the war in Ukraine, the Bangladesh government is being careful ahead of the announcement of the budget.
“Bangladesh cultivates a healthy amount of fruit and flowers,” NBR said. “We have imposed the regulatory duty so that native flower and fruit growers can get a fair price for their products. We will also encourage the cultivation of fruit and flowers. This will benefit small farmers and reduce dependence on imports.”
It echoed similar sentiments with regard to other goods categories as well. “The furniture and cosmetics produced in the country are of good quality and are sufficient to meet Bangladesh’s demands.”
The NBR believes the imposition of the tariff in these sectors will aid the development of their domestic industries by making them more competitive with foreign products.
The tariffs will also help save valuable foreign exchange reserves and raise government revenue while discouraging unnecessary imports, NBR added.
Before the recent hike, the government had imposed import duties of 3-35 percent on 3,408 products, with higher tariffs on those classified as luxury goods.
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