NBR halves import duty of sugar

The National Board of Revenue (NBR) yesterday reduced the duty on sugar imports from 30 percent to 15 percent to bring down prices of the sweetener in the local market.

As a result of this reduction, the import cost of raw sugar will decrease by Tk 11.18 per kilogramme (kg) and the cost of refined sugar will drop by Tk 14.26 per kg, according to a statement issued by the NBR.

At retail, the prices have increased by 2 percent in Dhaka over the past month and is now ranging from Tk 125 to Tk 135 per kilogramme, according to data from state-run Trading Corporation of Bangladesh.

The NBR expects the duty cut to decrease market prices and discourage smuggling.

Industry insiders believe so too.

As a result of this reduction, the import cost of raw sugar will decrease by Tk 11.18 per kg

"Definitely, this move will help reduce the existing prices as well as smuggling," said Taslim Shahriar, deputy general manager of the Meghna Group of Industries, one of the leading importers and processors of commodities.

But a decrease in the price might come about gradually once existing stocks get sold, he said.

The tax administration took the decision after the Bangladesh Trade and Tariff Commission (BTTC) proposed doing so for both the unrefined and refined varieties and to increase surveillance in border areas to stop illegal imports

This will help keep prices stable during the holy month of Ramadan, which is around five months away and when demand usually increases, the BTTC said.

Bangladesh annually requires 24 lakh tonnes of sugar and five refiners meet around 99 percent of the total requirement by importing raw sugar mainly from Brazil, according to industry insiders.

State sugar mills meet just 1 percent of the demand.

Bangladesh's sugar imports fell sharply in fiscal year 2023-24 as refiners stayed away from placing orders with foreign buyers, alleging there was an illegal influx of the sweetener through the borders.

Import of raw sugar by the refiners stood at 13.86 lakh tonnes last fiscal year whereas it was 18.49 lakh tonnes in the preceding year, according to data compiled by the commerce ministry.