Govt slashes import duty on chillies, tomatoes to 20.5%
Import tax will drop to 20.5% initially before rising to 31%
The government has sharply cut import duties and taxes on green chillies and tomatoes, reducing the combined rate from 61% to 20.5% for the first month in a bid to ease prices and increase market supply.
The decision was approved at a Cabinet meeting chaired by Prime Minister Tarique Rahman at his office today (17 August), according to a press release from the prime minister's press wing.
After the notification is issued, the tax rate on imports of both products will remain at 20.5% for the first month before rising to 31% in the following month.
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The Internal Resources Division placed the proposal, citing seasonal production shortages, adverse weather, natural disasters and supply disruptions as factors behind the sharp rise in prices.
Green chilli prices rose to Tk240–400 per kg in Dhaka markets in late July following heavy rain and flooding in several parts of the country.
The government subsequently allowed imports from India in early August.
Imports through Hili and Benapole helped bring wholesale green chilli prices down, but retail prices in Dhaka have remained relatively high.
Green chillies were selling for Tk150–160 per kg in Dhaka markets today, while tomatoes were priced at Tk100–120.
The government expects the lower import tax to reduce importers' costs and encourage additional supplies, helping keep prices of the two essential vegetables within consumers' reach.
