Fruit prices skyrocket

Imported Fruit Prices Soar Amid Rising Duties and Lean Season

• The ongoing lean season for local fruits has led to a surge in the prices of imported fruits, adding financial strain on consumers ahead of Ramadan.
• Increased customs duties and taxes on fruit imports have further escalated prices, raising concerns among both consumers and traders, market observers report.
• The Bangladesh Trade and Tariff Commission (BTTC) has recommended a reduction in import duties on fresh fruits such as apples, oranges, grapes, pears, and pineapples.
• A letter was sent to the National Board of Revenue (NBR) on February 17, urging tax cuts to ease the financial burden on consumers.
• Vendors in Dhaka report a 40-60% increase in the prices of popular imported fruits compared to last year:
  • Apples: Tk 280-400 per kg
  • Oranges: Tk 280-350 per kg
  • Grapes: Tk 450-850 per kg
  • Pomegranates: Tk 450-550 per kg
• Importers and wholesalers have raised prices by 20-25% in the past month, as per the Bangladesh Fresh Fruits Importers Association.
• The price surge is attributed to the government’s recent increase in supplementary duty (SD) on fruit imports from 20% to 30%.
• Existing import taxes include:
  • 10% advance income tax (AIT)
  • 20% regulatory duty (RD)
• The tariff commission has proposed:
  • Reducing SD back to 20%
  • Lowering AIT from 10% to 2%
  • Revising the 20% regulatory duty
• It highlighted that the rising US dollar exchange rate, combined with the high tax structure, has made imported fruits unaffordable for many.
• Fresh fruit imports have declined significantly due to the increased tax burden, impacting revenue collection.
• January 2025 saw a notable drop in fruit imports compared to the same period last year:
  • Mandarin: ↓51%
  • Pear: ↓45%
  • Pomegranate: ↓32%
  • Grape: ↓21%
  • Apple: ↓3.5%
• Importers currently pay Tk 120 in taxes for every Tk 86 worth of imported fruit.
• The tariff commission has suggested removing the 5% advance VAT at the import stage since fresh fruits undergo no local value addition.
• Sirazul Islam, President of the Bangladesh Fresh Fruits Importers Association, stated that imports have dropped by 40-50% in recent weeks due to high prices and declining sales.
• He urged the government to rationalize duties before Ramadan to ease consumer hardships.
• Kazi Iqbal Bahar Saberi, Secretary of the Consumers Association of Bangladesh (CAB) in Chattogram, emphasized the need for increased government monitoring from import to retail levels to ensure fair pricing as demand rises during Ramadan.