The Bangladesh government has decided to withdraw 5 per cent customs duty on import of onion to encourage importers to import the product from alternative markers as India put a ban on onion export.
Confirming the decision, finance ministry officials on Sunday said that the National Board of Revenue was working on issuing a statutory regulatory order in this connection.
The government imposed the duty for the first time in the budget for the current fiscal year 2020-2021 to ensure fair price for farmers and encourage domestic production of the item.
Now the decision of withdrawal of the duty was taken following the instruction of the government high-ups after the price of onion started to soar and reached to Tk 120 per kg on Tuesday after India imposed a ban on export of onion on September 14.
Commerce ministry requested the NBR to withdraw the duty to keep the price of the product stable in the domestic market.
Officials of the NBR said that they were working on issuing an SRO in this regard following the instruction of the government high-ups.
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