Competitive, rationalised tariffs imperative to face post-LDC challenges

Competitive and rationalised tariffs are imperative to face the challenges after Bangladesh's graduation from the least developed country (LDC) status, business leaders and stakeholders have opined.

"After the LDC graduation, Bangladesh will have to pay 8-16% duties on exports to other countries. Moreover, the country will no longer be able to impose supplementary and regulatory duties to safeguard its local industries," Dhaka Chamber of Commerce and Industry President Rizwan Rahman said at a workshop organised by the chamber at its office in the capital on Wednesday, according to a press release.

At present, Bangladesh's average tariff is about 13.5% which is higher than Vietnam, Taiwan and Malaysia, he noted, adding that the country must enhance productivity, minimise costs, develop skilled workforces and ease doing business situations. 

Taking part in the event, Bangladesh Trade and Tariff Commission Joint Chief Md Mashiul Alam said, "It is true that our tariff line is not very competitive. It is higher than that of many other countries. We, therefore, have no alternative to rationalising the tariff structures."

"In that case, a sectoral tariff policy for at least five years will be helpful. Besides, we will have to go for regional integration with different preferential and free trade agreements to hold different market access," he added.

"The government and private sector should work jointly to make our tariff structures competitive," Bangladesh Trade and Tariff Commission Member Shish Haider Chowdhury said.

"Bangladesh is going to be graduated from LDC in 2026 which is good. But, we will need tariff rationalisation after the graduation. At the same time, we will have to concentrate on VAT and tax collection to balance revenue collection."

 "Previously, we were reluctant about free trade agreements, but now the government is doing some studies to go for that," he noted. 

 "We have to increase our export in line with tariff rationalisation. Still, we have a big gap in the balance of payment for exports and imports," said Farhana Iris, director-3 (joint secretary) at the WTO Cell of the Ministry of Commerce said.

National Board of Revenue First Secretary Md Neyamul Islam said, "Since we will lose preferential access and duty-free quota, we need to increase our production capacity and attract more foreign direct investment."

DCCI Senior Vice-President Arman Haque chaired the workshop in which representatives from 50 member companies took part, the release reads.