Bangladesh’s National Board of Revenue plans to rationalize 60 tariff lines by 2026, aligning customs duties with WTO-bound rates. This initiative is part of preparations for Bangladesh’s graduation from Least Developed Country status in November 2026.
Government aims to phase out minimum import prices and streamline Supplementary Duties (SD) and Regulatory Duties (RD) to enhance export competitiveness and comply with WTO regulations. Customs duties on six items have already been reduced, with SD on 234 products and RD on 191 products withdrawn in FY24. Intermediate goods’ duties will be gradually phased out over three years to balance local industry protection and revenue generation.
The National Tariff Policy 2023, implemented from August 2023, seeks to rationalize tariffs, promote export diversification, and facilitate Free Trade Agreements with key trading partners. A shift from reliance on trade taxes to direct taxes and VAT is planned to reduce anti-export bias and foster local business growth, offsetting revenue losses from tariff adjustments.
These measures are part of broader strategies to strengthen Bangladesh’s global trade position post-LDC graduation while maintaining a competitive domestic industry.
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