The National Board of Revenue (NBR) has withdrawn the existing 5 per cent duty on onion import in an effort to rein in the heated up prices of these items.
Besides, the tax regulator also slashed the regulatory duty on sugar import to 20 per cent from 30 per cent.
The move came after the ministry of commerce requested NBR for this as part of its efforts to control price spirals of essential commodities.
Earlier on 11 October, the commerce ministry sent a letter to the NBR to withdraw onion import duty and reduce the duty on sugar import. Prices of the daily essential commodities, onion and sugar, in particular, continue to soar in the local markets for the last few weeks.
Onion is now selling at Tk70-80 per kg, up from Tk40 a month ago in the local markets.
In meetings with the ministry of commerce, the importers attributed the price volatility to rising global prices.