Tariff Commission proposes reducing import duty, AIT on dates
It recommends complete waiver of 5% advance tax
The Bangladesh Trade and Tariff Commission has proposed reducing import duties and advance income taxes (AIT) on dates to keep prices affordable during the upcoming Ramadan.
The Commission sent the proposal today (14 November), along with its recommendations, to the Ministry of Finance, the Ministry of Commerce, and the National Board of Revenue (NBR).
The Tariff Commission recently prepared a report recommending a lowering of the import duty on dates from 25% to 15% and reducing the AIT from 10% to 3%.
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The Commission also suggested a complete waiver of the 5% advanced tax (AT) on date imports.
Currently, the total import duty on dates is 63.60%. Due to the additional import duties, consumers are paying higher prices for imported dates.
It is estimated that the annual demand for dates in Bangladesh is between 1 lakh and 1.10 lakh tonnes, with 50,000 to 60,000 tonnes consumed during Ramadan alone.
Therefore, the government takes necessary steps to ensure smooth and uninterrupted imports ahead of Ramadan every year.
According to the Commission's recommendation, the existing customs valuation for date imports, set by executive order at customs stations, is flawed. It suggests that customs valuation should follow proper procedures based on the actual exchange value.
Currently, the customs value of all imported dates – including varieties like Ajwa, Mariam, Medjool, Mabroom and those in refrigerated containers has been set at $4 per kilogram.
Even if traders purchase these dates at $2, they are still required to pay duties based on the $4 valuation.
Traders say for more than two years, they have been urging the government to adjust the valuation to reflect the actual purchase price, but no action has been taken.
In the 2022-23 fiscal year, Bangladesh imported 86,581 tonnes of dates, while imports for 2023-24 reached 80,910 tonnes. The average import price per kilogram of dates was Tk336 in 2022-23 and Tk497 in 2023-24 (excluding taxes).
From July to October 2024, only 289 tonnes were imported at an average price of Tk433 per kg.
The majority of dates are imported from Saudi Arabia, the UAE, Tunisia, Egypt, Jordan, Iraq, Iran and Pakistan.
Importers want reforms in customs valuation
On 6 November, a meeting was held with date importers, presided over by Dr Moinul Khan, chairman of the Tariff Commission.
At the meeting, Md Sirajul Islam, president of the Bangladesh Fresh Foods Importers Association, noted that the fixed customs valuation and 'unjustified' taxes are causing dates to be sold in Bangladesh at higher prices than international market rates.
This is hurting both consumers and traders, and immediate reforms in customs valuation are essential, he added.
Another importer, Nuruddin, a member of the same association, pointed out that the high LC margin requirements by banks are increasing the cost of date imports.
He suggested that dates should not be considered luxury goods and recommended removing them from the 100% Letter of Credit (LC) margin requirement, as they are widely consumed in the country during Ramadan.
