BTTC requests NBR to reduce import duties on dates ahead of Ramadan

The Bangladesh Trade and Tariff Commission (BTTC) has urged the National Board of Revenue (NBR) to reduce import duties and taxes on dates to ensure an adequate supply before the upcoming Ramadan fasting month.

In a recent letter to the NBR, the BTTC recommended extending the duty exemptions until March 31, 2025. It proposed lowering the customs duty on dates from the current 25% to 15% and reducing the Advance Income Tax (AIT) from 10% to 3%.

For the fiscal year 2024-25, the government has imposed a 25% customs duty, 15% value-added tax (VAT), 10% AIT, 3% regulatory duty (RD), and 5% additional tax (AT) on all date imports, resulting in a total tax burden of 63.60%.

The BTTC argued that the high AIT and AT on date imports are excessive and unreasonable. It stated that these taxes are increasing the financial burden on traders and driving up date prices, suggesting that duties and taxes should be reduced where possible.

In February, the NBR had already reduced taxes on date imports from 25% to 15%, with the exemption set to last until March 30, 2024.

The BTTC's request is based on discussions from its recent meeting. It also recommended easing certain port conditions to facilitate the import of dates.

Bangladesh’s annual demand for dates is about 0.11 million tonnes, with 50,000-60,000 tonnes needed specifically for Ramadan. In recent years, date imports have declined, with traders typically sourcing dates from Saudi Arabia, UAE, Egypt, Tunisia, Jordan, Iraq, Iran, and Pakistan.