In an effort to make this essential commodity more affordable for consumers, the National Board of Revenue (NBR) has the specific import duty on both raw and refined sugar.
This decision is aimed at ensuring that consumers can purchase sugar at lower prices. The customs wing of NBR issued a Statutory Regulatory Order (SRO) to implement this change, with the new policy coming into effect on Wednesday.
While the specific import duty has been halved, other import taxes, including VAT and regulatory duty on sugar imports, remain unaltered.
Previously, there was a fixed tariff of Tk 3,000 for to import a tonne of raw sugar and Tk 6,000 for a tonne of refined sugar. These tariffs have now been reduced to Tk 1,500 and Tk 3,000, respectively.
Additionally, a 30% regulatory duty, a 15% VAT, and a 2% advance income tax still apply to sugar imports.
Earlier in May, the government had increased the retail price of sugar by Tk 16, fixing it at Tk 120 per kilogram, following a request from sugar mill owners due to rising global market prices.
However, even if global sugar prices have trended downward, the same cannot be said for the local market. In September, the Ministry of Commerce declared that the price of sugar was set at Tk 120 per kilogram, while packaged sugar was sold at Tk 135 per kilogram due to uncontrollable price fluctuations.
According to the Trading Corporation of Bangladesh (TCB), as of Tuesday, consumers had to pay Tk 135 per kilogram for sugar, marking a 39% increase compared to the same day a year ago.
Earlier, ahead of Ramadan in February, the NBR had eliminated the fixed tariff on both raw and refined sugar imports. Additionally, the RD on sugar imports was reduced from 30% to 25%, which was extended until May 30 of this year.
Bangladesh currently has a demand of approximately 21 lakh tonnes of sugar. To meet this demand, about 20 lakh tonnes of raw sugar are imported, while the remaining demand is fulfilled through local production and refined sugar imports, according to data from the Bangladesh Bureau of Statistics.
