More duty planned on cashew nuts, dates

In the proposed budget for FY 2023-24, the government has levied Total Tax Incidence (TTI) on imported cashew nuts and dates.

On Thursday, Finance Minister AHM Mustafa Kamal proposed to increase the Total Tax Incidence (TTI) on the import of Shelled Cashew Nuts from 15.25% to 43%.

On the other hand, TTI on fresh dates and dried dates at the import level are different at present.

In order to equalize the TTI of both types of dates, the government has advised imposing a 25% customs duty and 15% VAT at the import stage.

The proposal to raise the import duty on cashew nuts was aimed at supporting the thriving local industry.

Cashew nuts are being produced in the hilly regions of Bangladesh and factories have been set up to process the locally grown cashew nuts.

As of now, the country has a total of 22 cashew nut processing factories. Collectively, these companies have a current annual production capacity of over 150,000 tonnes. To sustain this level of production, approximately 600,000 tonnes of raw materials are required.

Cashew nut cultivation is gaining popularity in the country's hilly regions, with an annual production of around 2,000 tonnes. As the industry continues to develop, the government has opted to maintain a nominal tax rate of 1% on the import of raw cashew nuts. This measure aims to support the growth of the sector.

Industry insiders have revealed that raw cashew nuts are imported primarily from African countries. Given the existing capacity, the sector demands approximately 650,000 tonnes of raw materials.

The international market price for raw cashew nuts ranges from $800 to $1,200 per tonne. As per international standards, it is feasible to produce 1 kg of processed cashew nuts from every 4 kg of raw cashews.

However, the minimum export value for processed cashew nuts in the international market stands at $6,000 per tonne.