Tariff Commission recommends cutting duty on six imported fruits including apples and grapes

The Bangladesh Trade and Tariff Commission has recommended exempting apples, oranges, mandarins, grapes, pears and pomegranates, fruits the country does not grow commercially in enough quantity, from supplementary and regulatory duty. In a report sent to the commerce ministry on 27 October, it says total duties and taxes on these fruits now stand at 121.78 percent.

Duties up, imports down: total duty was 89.32 percent in 2021-22, 113.80 percent in 2022-23, 118.80 percent in 2024-25, 116.78 percent in 2025-26 and 121.78 percent in 2026-27. In 2020-21, imports of 800,000 tonnes of fresh fruit brought in Tk 2,569.86 crore in revenue; in 2025-26 imports fell to 570,000 tonnes, yet revenue rose to Tk 5,936.66 crore.

The commission estimates that if imports reach 820,000 tonnes, revenue could exceed Tk 6,592.80 crore, and with a 20 percent rise to 984,000 tonnes, Tk 7,911.36 crore. The average exchange rate, up from Tk 86.50 to the dollar in 2021-22 to Tk 121.50 in 2025-26, is another main driver of prices. Duties are far lower in neighbouring countries: about 60-61 percent on apples and pears in India, 25-35 percent in Nepal and 50-60 percent in Sri Lanka.

Prices the commission collected in Dhaka markets on 6 October: apples Tk 260-315 a kilo wholesale and Tk 350-370 retail; oranges Tk 325 and Tk 450-500; malta Tk 275 and Tk 370-400; grapes Tk 360 and Tk 450-500. Not all of the gap is profit, it says; transport, storage, spoilage and shop rent add to it.

Dr Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue, told Banglanews24 that with less pressure on reserves the case for high duties has weakened, and the government could drop the regulatory duty and then cut others step by step; but he doubts revenue would rise much, and says lowering consumers' costs is the main argument. Md Sirajul Islam, president of the Bangladesh Fresh Fruits Importers Association, says high duties are shrinking legal imports while fruit is smuggled in across the Sylhet and Habiganj borders and elsewhere.

The commission's other two recommendations are to apply the Customs Valuation Rules, 2000 in setting dutiable value, and to monitor imports and revenue regularly after any cut. The final decision rests with the government. The report is by Banglanews24 senior correspondent Goutam Ghosh.

Source: Banglanews24