NBR to reduce VAT on sweets

The National Board of Revenue (NBR) has reduced import taxes on onions and potatoes to address rising prices and boost supply. Effective until November 30, tariffs on onions have been cut to 5 percent and on potatoes to 15 percent. This move aims to make these essential items more affordable.

In the last two months, importers secured permits to bring 280,000 tons of onions, mainly from India, but due to rising prices in India, imports from China, Pakistan, Egypt, and Thailand have increased. Chittagong seaport cleared 5,588 tons of onions during this period. Despite the surge in imports, retail onion prices remain above Tk 120 per kg. The country uses around 3 million tons of onions annually, with local production at 2.3 million tons; the deficit of 700,000 tons is typically met through imports.

Recent floods in Bangladesh are expected to reduce rice acreage and production, particularly affecting Aus and Aman seasons. The US Department of Agriculture (USDA) forecasts rice acreage will fall to 11.5 million hectares for the 2024-25 marketing year, down 3.4 percent from the previous estimate of 11.9 million hectares. This could lead to a 2.4 percent drop in production to 36.8 million tonnes.

The price of eggs in Bangladesh has surged recently due to a supply shortage, exacerbated by flooding in 64 upazilas across 11 districts. The floods have disrupted production, with chickens eating less due to high humidity and a significant reduction in egg production. Consumers are feeling the pinch as eggs, a staple protein source, now consume a larger portion of their budgets. 

The advisory council committee on government purchase approved key procurements to address local demand for essential commodities. The Bangladesh Chemical Industries Corporation (BCIC) was authorized to import 30,000 tonnes of bulk granular urea fertiliser from the UAE at a cost of Tk 1.21 billion and 30,000 tonnes of bagged granular urea fertiliser from a local source for Tk 1.16 billion.

The government plans to impose stricter limitations on meat imports to protect local dairy and cattle farmers by halting import permits for now. A significant portion of a recent discussion emphasized preventing the import of Indian beef, with concerns about the potential collapse of the local market if cheaper imported meat undermines domestic farmers.