Imported fruits, cosmetics, furniture get costlier

The government has imposed fresh regulatory duties on products under 135 HS Codes in a bid to tighten imports and ease pressure on the foreign exchange.

The National Board of Revenue made it effective from Tuesday by issuing a circular in this regard.

Most of the effects will be on fruits and cosmetics as Bangladesh does not have adequate production to meet the domestic demand for these items.

Serajul Islam, general secretary of Bangladesh Fresh Fruits Importers Association, said Bangladesh does not produce apples, oranges, and grapes and the country has to rely fully on imports to meet the demand.

“Apple’s price will increase by 7 percent for the duty hike,” Islam told the Business Insider Bangladesh on Tuesday. Regulatory duty on apples was only 3 percent which has been increased to 20 percent, he said.

Good thing is that seasonal fruits, such as mangoes, litchi and watermelons are in the markets and businesses import fewer fruits from abroad during this period.

Sayed A Momen, public relations officer of NBR, said local flower and fruit farmers will get fair prices for their products because of the new regulatory duty.

“Marginal farmers will benefit and dependence on imports will reduce,” Momen said in a statement.

On the duty hike on furniture and cosmetics, he said local manufacturers will be able to compete with the foreign makers because of the decision.   

Like many countries, Bangladesh has been feeling the onslaught of inflationary pressure, especially after the outbreak of the Russia-Ukraine war three months ago. Imports of the country have shot up and foreign exchange markets get heated up because of the widening gap in supply and demand for the greenback.

As a result, the local currency taka has been depreciating and one dollar costs Tk 95 for import payments against the interbank exchange rate of Tk 87.90.

Earlier this month, Bangladesh Bank increased the LC cash margin for the import of cars and motor vehicles to 75 percent so that importers feel discouraged to bring in new cars.