New tariff policy charts path to enhanced investment, export growth

The government has formulated the first-ever National Tariff Policy 2023 aiming to establish a consistent tariff framework that encourages more domestic and foreign investments.

The WTO Wing of the commerce ministry published a gazette notification of the policy on Thursday.

In a significant development this year, the cabinet on July 17 approved the National Tariff Policy 2023 with the objective of enhancing the competitiveness of domestically manufactured goods in the global market.

This new policy is designed to drive sustainable economic growth by enhancing the competitive edge of local industries, broadening and diversifying exports, incentivising investments and generating employment opportunities through trade liberalisation and the rationalisation of tariff structures.

Implementation of the policy will be overseen by the Internal Resources Division and the National Board of Revenue (NBR), with the Bangladesh Trade and Tariff Commission providing support.

The NBR will formulate a time-bound action plan within six months of the gazette publication to harmonise the country's tariff regime in accordance with the policy.

A 16-member committee, headed by the commerce minister, will be formulated to implement the policy.

The policy will concentrate on expanding and diversifying exports by mitigating anti-export biases. Besides, it will abolish minimum import values in line with the regulations of the World Trade Organization.

The gazette said that the existing bond facilities will be made more transparent and simpler for export-oriented industries. The policy's scope extends to bolstering Bangladesh's participation in both global and regional value chains.

"Tariffs imposed at the import and export levels are to be considered as regulators of the international trade flow of Bangladesh," it said.

The policy said import-level duties and taxes should be aligned with the bound rate of Bangladesh committed to the World Trade Organization.

To facilitate customs processes and minimise needless complexities, the policy will ensure greater transparency in the customs system by maintaining equitable duty and tax rates for similar products.

The policy stipulates that tariffs imposed at the import level must undergo gradual reduction, progressing toward a reasonable threshold that serves the welfare of consumers.

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