NBR extends duty benefit for raw sugar import

The National Board of Revenue (NBR) has extended its reduced tariff benefit for importing raw sugar until May 15 so that consumers can buy the sweetener at reasonable prices during the upcoming month of Ramadan.

As such, refiners can import raw sugar by paying 20 per cent regulatory duty instead of the previous 30 per cent, according to a notification from the NBR issued yesterday.

The move comes after the previous concessionary benefit for importing raw sugar with 20 per cent regulatory duty expired on February 28.

"We have extended the reduced regulatory duty benefit to help keep sugar prices within the purchasing capacity of general consumers," an NBR official said.

In its notification, the revenue authority informed that the benefit came into effect from March 1.

The NBR slashed the regulatory duty on raw sugar on October 14 and offered the privilege until February 28 to curb the spiralling prices in the domestic market.

Consumers had to pay as much as Tk 80 to get one kilogramme of sugar from retailers in Dhaka city yesterday, according to market price data collected by the Trading Corporation of Bangladesh (TCB).

On average, prices were 3.27 per cent higher than the Tk 75-78 paid per kilogramme a month ago.

Similarly, yesterday's refined sugar prices in Dhaka were 17 per cent higher year-on-year compared to Tk 65-70 in 2021, as per TCB data.

Bangladesh imports 97 per cent of the 18 lakh tonnes of sugar required annually as local production of sugarcane and sugar at state mills is very minimal.

Currently, importers have to pay Tk 3,000 as fixed tariff to import each tonne of raw sugar in addition to value added tax and 20 per cent regulatory duty.

In case of refined sugar, import duty is higher than raw sugar, according to the NBR.