Fruit prices go through the roof

As the lean season for local fruits continues, the prices of imported ones have surged to record highs, putting immense pressure on consumers ahead of Ramadan.

The recent increase in customs duties and taxes on imported fruits has exacerbated the situation, leading to widespread concerns among consumers and traders alike, market observers have said.

In response to the soaring prices, the Bangladesh Trade and Tariff Commission (BTTC) has recommended reducing import duties on fresh fruits, including apple, orange, grape, pear, and pineapple.

It sent a letter to the National Board of Revenue (NBR) on February 17, urging a reduction in the tax burden to alleviate the financial strain on consumers.

Vendors across the capital report the prices of the popular imported fruits have risen by 40-60 per cent compared to last year.

Apples are now selling at Tk 280-400 a kg, oranges Tk 280-350 a kg, grapes Tk 450-850 a kg, and pomegranates Tk 450-550 a kg in Dhaka's fruit outlets.

Importers and wholesalers increased prices by 20-25 per cent in the past month, according to the Bangladesh Fresh Fruits Importers Association.

The price hike is attributed to the government's recent decision to raise the supplementary duty (SD) on fresh fruit imports from 20 per cent to 30 per cent.

There is already a 10 per cent advance income tax (AIT) and a 20 per cent regulatory duty (RD) on fruit imports.

The tariff commission has proposed reducing the supplementary duty to the previous 20 per cent, slashing the AIT from 10 per cent to 2 per cent, and rationalising the 20 per cent regulatory duty.

It emphasised the current tax structure, combined with the appreciation of the US dollar, has made imported fruits unaffordable for most consumers.

In its letter to the NBR, the commission also said fresh fruit imports have already declined significantly due to the increased tax burden.

On the other hand, the imports of several fruits saw a significant decline in January compared to the same month last year, attributed to the increase in supplementary duty.

Mandarin imports dropped by 51 per cent, followed by pears at 45 per cent, pomegranate at 32 per cent, grape at 21 per cent, and apple at 3.5 per cent in January 2025, the commission has said.

It has also cautioned the decline in fresh fruit imports due to high customs duties could lead to reduced revenue collection in the future.

Currently, importers pay Tk 120 in taxes for every Tk 86 worth of imported fruit.

The commission has also suggested exempting advance tax (as 5 per cent of advance VAT locally) at the import stage as fresh fruits do not undergo any value addition locally.

Sirazul Islam, president of the Bangladesh Fresh Fruits Importers Association, has said imports declined by 40-50 per cent in recent weeks amid a drop in sales followed by record prices.

He says the current prices of imported fruits are 40-60 per cent higher than that a year ago amid the new duty slap as well as the depreciation of local currency against the greenback. Sirazul says only a few local fruits, such as berry and guava, are available in the market in the current off season.

Imported fruits, which are in high demand, have become unaffordable for the lower middle class and the poor, he notes.

He has urged the government to rationalise duties ahead of Ramadan to ease the burden on consumers.

Kazi Iqbal Bahar Saberi, secretary of the Consumers Association of Bangladesh (CAB) in Chattogram division, says fruit demand is likely to rise further during Ramadan, which begins next week. He says fruit imports have declined, which should be taken into account.

The CAB official further says after reviewing duties, the government must increase monitoring from the import stage to the retail level to ensure fair pricing.

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