Govt cuts import tax on green chillies, tomatoes to 20.5%
Green chilli prices crossed Tk400 a kilogramme in some markets last month amid a sharp rise in vegetable prices.
The government has cut import tax on green chillies and tomatoes from 61% to 20.50% following a sharp rise in their prices.
The Internal Resources Division (IRD) of the Ministry of Finance issued the order on 30 August and published it on the government website yesterday (31 August).
The lower tax rate will remain in effect for one month before rising to 30% for another month. After 60 days, it will return to the previous rate of 60%, according to the order.
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Officials of the National Board of Revenue (NBR) were primarily involved in preparing the order on behalf of the IRD.
A senior NBR official familiar with the development told The Business Standard, "The prices of these two products have increased in the market recently. The reduction in import tax will create an opportunity to increase supply in the market, allowing consumers to purchase the products at somewhat lower prices."
Green chilli prices began rising in July and crossed Tk400 a kilogramme in some markets in August, according to media reports.
The government took the latest measure following the sharp rise in prices.
