The National Board of Revenue (NBR) in Bangladesh has announced a reduction in the source tax on imported fruits. The tax on imports of fresh and dried fruits such as grapes, pears, tangerines, and oranges has been lowered from 10 per cent to 5 per cent. This tax adjustment took effect immediately as per the notice issued on Thursday.

Previously, these fruits were part of a broader list of over 100 goods and services that saw increased customs duties and VAT beginning January 9. At that time, the supplementary duty on imported fruits rose to 30 per cent from the earlier 20 per cent.

In May 2022, the regulatory tax on approximately 135 items was increased from 0 or 3 per cent to 20 per cent. This measure was part of the strategy to aid post-COVID economic recovery and manage foreign reserve pressures. Imported fruits were a notable segment of this list.

Consequently, the pricing of imported fruits has remained elevated in recent years. During Ramadan, prices have surged, with consumers paying $0.23 to $0.46 per kilogram (Tk 25 to Tk 50). Current market prices in the capital for apples range from $2.93 to $3.84 per kilogram (Tk 320 to Tk 420), oranges from $2.56 to $2.74 (Tk 280 to Tk 300), tangerines from $2.74 to $3.11 (Tk 300 to Tk 340), and grapes from $2.74 to $3.02 (Tk 300 to Tk 330).

At present, these fruits are subject to an aggregate tax and duty of 136 per cent, comprising a 25 per cent import duty, 20 percent regulatory duty, 30 per cent supplementary duty, 15 per cent VAT, 5 per cent advance income tax, and 5 per cent source tax.

Source: BDNews24