Five-tier customs duty structure proposed

Finance Minister Abul Maal Abdul Muhith on Thursday proposed a five-tier duty structure, which would be introduced in the forthcoming 2016-17 financial year (FY17).

Placing the proposal at the Jaitya Sangsad (JS), the finance minister said that restructuring of the tariff structure would safeguard the local industry.

Currently, a four-tier tariff structure is in force for realising customs duty on products, also categorised into four groups. The product groups and the applicable duties are: capital machinery and spares 1.0 percent, basic raw materials 5.0 percent, intermediate raw materials 10.0 percent and finished products and final consumer goods 25.0 percent.

There will be 15 percent duty on importing intermediate raw materials once the proposed five-tier tariff structure is implemented.

"Continuation of the existing duty exemptions or concessions accorded to the essential commodities including edible oil, sugar, pulses, onion and garlic in the next fiscal year will continue," the minister said.

Source: BSS.