Cabinet approves proposal to reduce customs duty, taxes on green chilli, tomato import

To ensure food security, stabilize essential commodity prices, and protect the purchasing power of general consumers, the cabinet has approved a proposal to reduce import duties and taxes on green chillies and tomatoes. The proposal to lower import duties on these items for a specific period was approved during a cabinet meeting chaired by Prime Minister Tarique Rahman, as announced in a press release issued by the Prime Minister's Office on Monday night (August 17).

The proposal notes that green chillies and tomatoes are widely consumed essential agricultural products in the country. However, seasonal production variations, natural disasters, adverse weather, supply chain disruptions, and production shortfalls frequently cause abnormal spikes in their prices, creating an additional financial burden on ordinary citizens.

To maintain a normal supply of these items in the market and keep prices at a tolerable level, the proposal recommends reducing the import duties and taxes for a limited period. Currently, the total tax rate applicable on the import of green chillies and tomatoes stands at 61 percent.

According to the proposal, following the issuance of the gazette notification, the total tax rate on the import of these products will be reduced from 61 percent to 20.5 percent for the first month. In the following month, it will be set at 31 percent. This initiative aims to reduce costs for importers, increase the supply of green chillies and tomatoes in the market, and keep prices affordable for consumers.