Duty
India imposes 40% duty on onion exports effective today
The Revenue Department of the Indian Finance Ministry has imposed a 40 percent duty on onion exports to Bangladesh effective today (August 20, 2023), causing a hike in the price of the item mainly used as spice in local markets.
An Indian gazette notification signed by Amreeta Titus, deputy secretary of the Revenue Department under the Finance Ministry, said the duty will remain effective till December 31 this year. India imposed the duty for the first time.
Importers of Hili Land Port said earlier they paid no tax for importing onions from India. Due to the 40 percent duty, an extra Tk 10 per kg will have to be counted.
Read: Indian onions start reaching Satkhira, leading to prices easing down
On the other hand, each kg of onion is being sold at Tk 50 since this morning. Per kg of onion was being sold at Tk 39-47 just a day back.
They said Sunday is a weekly holiday in India and import of onion won’t be possible until the newly imposed duty is not paid, urging the Bangladesh government to look for alternative markets to import the item from.
Read: Indian onions start arriving through land ports as import resumes
Indian exporters said onion prices are soaring in the country and the government has imposed the duty to discourage exports.
They suspected that the prices may be hiked next month as substantial amounts of onions rotted due to excessive heat.
Read more: Govt to allow onion import from Monday: Agriculture Ministry
NBR works to impose additional duty on 330 goods
The National Board of Revenue (NBR) is working to impose additional duty on 330 products which are not essential goods, said commerce secretary Tapan Kanti Gosh.
He said no essential goods were imported in the country spending foreign exchange, Bangladesh Trade and Tariff Commission and NBR are assessing how much duty can be increased to discourage imports.
Read more: NBR supports Made in Bangladesh brand: Chairman
The commerce secretary told reporters around $1 billion can be saved by controlling those goods.
The government of Bangladesh had increased the duty on 135 products last May to discourage imports.
But even then the trade deficit has not reduced much. As a result, the Ministry of Commerce requested the Bangladesh Trade and Tariff Commission to verify that the duty can be increased on any other products, sources said.
Read more: NBR counting losses for rampant tax evasion
Following that request, the commission prepared a list of 330 products and sent it to the Ministry of Commerce.
Later the ministry sent it to the National Board of Revenue (NBR).
Read more: 20% year-on-year growth: NBR collected record Tk 8,733cr VAT in Aug
Mainly luxuries and less important national products dominate the list.
Bangladesh to seek duty cut on exports to growing Russian market: Shahriar
State Minister for Foreign Affairs Md Shahriar Alam has said Bangladesh would seek a duty cut on its exports to the Russian market during Russian Foreign Minister Sergei Lavrov’s upcoming visit in addition to seeking Russia’s support to resolve the Rohingya crisis and strengthen energy cooperation.
“Russia is gradually becoming a big market (for Bangladesh). Duty is the biggest impediment to enhancing trade. So Far I know there is still a 35 percent duty for shipments to Russia,” he said.
The State Minister, while talking to a small group of reporters at his office on Thursday, also talked about Bangladesh’s trade-related discussion with the Eurasian countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. “We hope Russia will help us as a big player.”
He said the Russian Foreign Minister will be here on a brief visit but they are working really hard to maximize his stay in Dhaka.
The Russian Foreign Minister is coming to Bangladesh on November 23 mainly to attend the 22nd IORA Council of Ministers (COM) meeting to be held in Dhaka on November 24.
Russia is a dialogue partner of the Indian Ocean Rim Association (IORA) while Bangladesh is the current chair of IORA.
Foreign Secretary Masud Bin Momen recently hinted that considering the current situation, Bangladesh will explore the possibility of cooperation in the energy sector with Russia during Russian Foreign Minister Sergei Lavrov’s planned official visit here.
Bangladesh will also discuss food grains supply and quick implementation of the projects that are in the pipeline including the Rooppur Nuclear Power Plant.
The Russian Foreign Minister will meet Prime Minister Sheikh Hasina apart from his bilateral meeting with Foreign Minister Dr AK Abdul Momen.
The visit will give us an opportunity to highlight our challenges and priority issues with Russia, Foreign Secretary Masud told reporters on Sunday.
Read more: Bangladesh abstains in UNGA vote calling on Russia to pay reparations
Masud also said Bangladesh wants Russia closer to Bangladesh to find a solution to the Rohingya crisis.
The Foreign Secretary, however, said there are still many days and reminded that Russia remains in an intensive situation.
"The invitation to take part in the IORA meeting for Minister of Foreign Affairs Sergey Lavrov has been received and the work is on as regards the possibility of this visit," an official at the Russian Embassy in Dhaka told UNB.
Earlier, Foreign Minister Momen invited his Russian counterpart to attend the 22nd IORA Council of Ministers (COM) meeting to be held in Dhaka on November 24.
Momen met his Russian counterpart last month in Astana, Kazakhstan on the sidelines of the CICA Summit and apprised him of the current situation of the Rohingya. He stressed the need for stronger international support for resolving the Rohingya crisis.
In August, Sergey Lavrov met with his counterpart Wunna Maung Lwin and other top Myanmar officials in Naypyitaw.
Read more:Despite differences, the G-20 summit ends with a condemnation of Russia