In a move poised to disrupt supply chains and drive up costs, the National Board of Revenue (NBR) plans to impose a 2% Advance Income Tax (AIT) at the import stage on around 200 previously tax-exempt products.
The measure, aimed at phasing out exemptions and boosting tax compliance, is expected to generate an additional Tk2,000 crore in revenues.
Broad impact on key sectors
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Among the affected items are crucial raw materials for Bangladesh’s apparel industry, including cotton and man-made fibers. Essential food staples such as potatoes, onions, lentils, chickpeas, soybeans, and maize, along with fertilisers, crude oil, sugar, and medical equipment, also fall under the new tax scope. Electronics and industrial machinery—including computer printers, routers, modems, aircraft engines, and buses—may also be affected.
Business leaders and consumers raise red flags
While the NBR argues the tax will enhance compliance and broaden the revenue base, business groups and consumer rights advocates warn of severe consequences. Many fear rising production costs, inflationary pressures, and a potential squeeze on industries already grappling with economic challenges.
People are already under immense pressure—tax hikes on basic commodities will only deepen their hardship.
SM Nazer Hossain, vice president, Consumers Association of Bangladesh
A senior NBR official, speaking on condition of anonymity, told The Business Standard, “Currently, there is no AIT at the import level on about 200 tariff lines. As part of our exemption phase-out plan, we intend to impose AIT on almost all of these items, except perhaps one or two.”
He said a final list expected following a high-level meeting later this week. “The plan has already been discussed with the finance adviser.”বিস্তারিত