Govt mulls withdrawal of duty on meat imports in next budget

The government is considering withdrawal of supplementary duty (SD) on meat imports in the upcoming national budget in a bid to prevent cattle smuggling from neighbouring India and help stabilise meat prices in the domestic market.

Besides, a reduction in the existing tariff value on meat imports is also under consideration, according to official sources.

The Ministry of Commerce (MoC) has submitted a proposal to the National Board of Revenue (NBR) to this effect, they said.

In the current fiscal year's budget, the government imposed a 25 per cent import duty and a 20 per cent supplementary duty on imported meat.

Following imposition of the SD and introduction of a restrictive condition in the country's import policy, the process of meat imports remained suspended, the MoC noted in its proposal.

As per the Import Policy 2021-24 notification, a prior approval is required from the Department of Livestock for importing meat, including frozen buffalo (bovine) meat.

Besides, the government has also fixed a minimum tariff value of US$ 5.0 per kilogramme of meat import.

"The suspension of meat import coupled with imposition of the SD and increased rate of tariff value impacted the domestic meat market," the MoC said in its proposal.

The ministry also highlighted that the government was incurring huge losses in revenue due to the smuggling of cattle into the country through border areas.

Considering the situation, the Ministry of Commerce proposed reducing the existing tariff value on meat imports to US$4.50 per kg.

The ministry has also asked the National Board of Revenue (NBR) to take necessary steps to incorporate these changes into the upcoming budget for fiscal year 2025-26, officials said.

However, local cattle farmers have voiced opposition to the proposed reduction in the supplementary duty and tariff value, arguing that such measures could harm the domestic livestock industry.

According to them, Bangladesh is now 'self-sufficient' in meat production.

They noted that the country's meat output increased sevenfold over the past 15 years.

While acknowledging that domestic meat prices were comparatively high, they said that the livestock sector would face a setback if the government withdraws such duties.

Livestock production also increased by 24 per cent in the last decade to 45.3 million animals, according to the Department of Livestock Services.

Official sources said the population of cow, buffalo, sheep and goat maintained a steady upward trend in recent years.

In the last calendar year, the demand for meat in the country stood at over 7.62 million tonnes while the production topped 9.22 million tonnes, according to an estimate.

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