Bangladesh slashes import taxes on green chilies and tomatoes to ease prices

Bangladesh has cut combined import duties and taxes on green chilies and tomatoes to 20.5% from 61% for one month, seeking to boost supply and ease prices.

Cabinet approved the reduction on Aug. 17 at a meeting chaired by prime minister Tarique Rahman. The rate will rise to 31% in the following month after the notification takes effect.

Officials cited seasonal production shortages, adverse weather, natural disasters, and supply disruptions. Green chili prices had climbed to Tk240-400 (approximately $1.97-$3.28) per kilogram in Dhaka in late July after heavy rain and flooding.

Imports from India through Hili and Benapole later helped lower wholesale prices. Green chilies were selling for Tk150-160 (approximately $1.23-$1.31) per kilogram on Aug. 17, while tomatoes were Tk100-120 (approximately $0.82-$0.98).

Government expects lower import costs to encourage more supplies and make both vegetables more affordable.