The NBR reduced the import tax on rice from 62.5% to 2% through two separate statutory regulatory orders (SROs) on 20 October and 31 October.

The National Board of Revenue (NBR) expressed optimism that reducing the import duty on rice from 62% to 2% in two phases will lower the cost of rice import by Tk25.44 per kilogram.

The reduction is expected to encourage rice imports, increase supply in the domestic market, ensure food security, and make rice more affordable for consumers, according to a press release issued today (3 November).

The tax cut was executed through two separate statutory regulatory orders (SROs) on 20 October and 31 October, resulting in a more than 60% reduction in the total import tax on rice. 

Previously, the total tax burden on rice imports stood at 62.5%, including import duty, regulatory duty, and advance taxes. 

On 20 October, the NBR initially lowered import duties to 25% to stabilise local rice prices.

Later, the Bangladesh Trade and Tariff Commission recommended a full exemption from import taxes, stating that the initial reduction was insufficient to meaningfully impact consumer prices. Responding to this recommendation, the taxing authority further reduced taxes, leaving only a 2% advance income tax on rice imports.

Importers also agreed with the assessment of NBR. Shah Alam, the owner of Maimuna Corporation, an importing company, told The Business Standard, “I believe the NBR’s assessment is almost accurate. With the import tax reduced to 2%, a price drop of Tk16 per kilogram of imported rice is feasible.”

Meanwhile, data from the Trading Corporation of Bangladesh (TCB) showed that as of yesterday, coarse rice was priced between Tk52 and Tk55 per kilogram in Dhaka’s metropolitan markets.

Published Date: November 3, 2024