Dhaka: National Board of Revenue (NBR) has withdrawn 5 per cent duty imposed on the import of this essential commodity to ease the volatile onion market.
NBR chairman Abu Hena Mohammad Rahmatul Munim issued a notification in this regard on Tuesday (September 22).
It is said the notification would be effective immediately and would remain in force till March 2021. The NBR has taken this initiative to stabilize the volatile onion market.
Earlier, a press release issued by the Finance Ministry on September 20 said that the 5 per cent duty on onion imports has been withdrawn on the instructions of the Prime Minister. Onion is a daily necessity dependent on partial import. The onion market has been volatile in the recent past and the crisis has taken a turn for the worse in the 2019-20 fiscal years. The price of onion has increased a lot in recent times. In addition, due to the recent halt in onion exports from India; its price in the market is currently on the rise.
According to the review, 5 per cent import duty was imposed on onion imports in the current fiscal year 2020-21 to ensure fair price to domestic onion farmers, encourage onion cultivation and reduce dependence on imports.
At present, considering the overall situation, the 5 per cent import duty on onions has been withdrawn till March 2021, which is known as the non-production period of onions.
Last Wednesday (September 18), Finance Minister AHM Mustafa Kamal said the withdrawal of the existing 5 per cent duty on onion imports would be considered.