Bangladesh to reduce import duties on 100 types of good to appease Trump administration

Chief Advisor Muhammad Yunus gave provisional approval to this move during a meeting with the National Board of Revenue (NBR) on Monday. Read further on Dynamite News:

Dhaka: The Bangladesh Interim Government is set to reduce import duties on at least 100 types of goods in the upcoming budget, in order to create a favourable ground for negotiations with the Trump administration amidst the additional tariffs imposed by the United States.

Chief Advisor Muhammad Yunus gave provisional approval to this move during a meeting with the National Board of Revenue (NBR) on Monday.

The financial advisor, NBR chairman and senior officials from the Income Tax, value-added tax (VAT), and Customs policy branches as well as the first and second secretaries attended the meeting.

An official present at the meeting told bdnews24.com, “We proposed zero duties on 100 tariff lines, keeping in mind imports from the United States.

“He (Muhammad Yunus) then asked how we could apply this specifically to the US. We said it was not possible and explained to him that the tariff cuts would primarily benefit the US.”

A tariff line, identified by an HS (Harmonised System) code, refers to a specific customs duty rate assigned to one or more similar products.

Customs duties for imports are determined based on these codes.

The goods include nearly 15–16 items such as oil, gas, arms, fighter aircraft parts and missiles—products that are typically purchased only by the government or in order to lower the trade deficit.

Officials explained that since such government purchases come under special agreements with duty exemptions, there’s no risk of revenue loss in these cases.

In addition, the Chief Advisor said taxes must not be imposed in areas where revenue potential is low and where it could raise pressure on the general public or create political unrest.

The finance advisor is scheduled to propose the budget for the upcoming fiscal year in the form of an ordinance through state television on Jun 2. VAT and customs provisions will come into effect immediately.

Unlike regular years, the budget won’t be discussed in the parliament due to its absence this time.

Instead, public discussion, talk shows, and reactions will help shape any necessary adjustments, which will later be formalised by passing the ordinance as the Finance Act.