Bangladesh Hikes Rice Import Taxes

June 8, 2018 Taxation in Bangladesh

Rice in BangladeshDHAKA – The rice industry in Bangladesh is recovering, and the government is aiming to protect it with heavy import taxes.

Bangladesh will impose a tax of 28 percent on all rice imports coming into the country, a move which is aimed at protecting local production.

The total tax of 28 percent will be made up of 25 percent in customs duties and an extra 3 percent in regulatory duties.

In 2017 the rate of rice imports was much lower, as it was cut to a total of only 2 percent.

The fluctuations in the rate of tax for rice imports is based on the production capability and pricing of rice in Bangladesh at that time.

Last year’s tax cut was caused by a steep increase in the price of rice produced in Bangladesh due to heavy flooding which destroyed crops.

Comparatively, this year’s increase in the rate of the tax is aimed at discouraging imports and encouraging the utilization of locally produced product, as production has returned to relatively normal levels.

It is expected that Bangladesh will produce approximately 19.7 million tonnes of rice during this year, exceeding its target of 19 million tonnes.