Phasing out of protective tariffs proposed

The government has announced phasing out of protective tariffs for the local manufacturing industries in a bid to prepare for graduation from the least developed country status, due in November 2026.

It also facilitated import of goods for the same purpose.

Also, following the reciprocal tariff of Trump administration, some 110 products would get full waiver from payment of duty taxes on import from United States.

While placing the budget for FY 2025-26, Finance Adviser Dr Salehuddin Ahmed said, "The LDC graduation challenges, along with the prolonged Russia-Ukraine war, instability in the Middle East, and, more recently, retaliatory tariffs on exports to the United States imposed by the Trump administration, have created a context in which Bangladesh's position on the existing tariff structure on import-export trade needs to be reassessed."

He proposed cut in the tariff rates for 65 goods, withdrawal of import duties on 110 goods, full supplementary duty withdrawal on nine goods, and reduction of supplementary duty on 442 goods. The existing six-tier customs duty has been re-structured by introducing a new tier at the rate of 3.0 per cent.

"The proposal introduces a new 40 per cent supplementary duty rate, alongside the existing twelve-tier structure. However, to benefit the citizens, it has proposed to keep the existing zero tariff rates unchanged for 52 essential goods, major food items, fertilisers, seeds, life-saving medicines, cotton, and raw materials for certain industries," he said.

Moreover, value added tax (VAT) on home appliance manufactories would be slaped at reduced rate from July 1, 2025 with a five year plan to phase out by 2030.

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