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Bangladesh to hike duty on luxury apparel imports
23 Mar '12
2 min read
Bangladesh's National Board of Revenue (NBR) is planning to hike Regulatory Duty (RD) on imports of four types of luxury apparel items to 25 percent. As a result, imported apparel items like salwar kameez and lahenga would get more expensive in Bangladesh.
A five percent RD currently prevails on luxury apparels imported by Bangladesh, which is in addition to other taxes payable by importers of luxury garments. The other taxes too prevail at high rates, as the Government wants to discourage imports of these goods.
The hike in RD would become effective after the NBR issues a Statutory Regulatory Order (SRO) to this effect.
According to NBR, there are bulk exports of luxury apparels from Pakistan and India to Bangladesh. Large shopping malls sell these imported salwar kameez and lahenga's at prices starting from Tk 100,000 onwards.
Likewise, fashion houses such as Shoppers World, Vasavi and Zara sell bridal lehangas, sarees and salwar kameez brought in from neighbouring countries at comparatively high prices, NBR said.
The decision to hike RD on four luxury apparel items, along with other 67 luxury items, is aimed at balancing the current fiscal's budgetary deficit, as it would bring some extra revenues to the public exchequer.
Finance Minister AMA Muhith apprehends that current year's budget deficit may rise above five percent of the nation's gross domestic product (GDP), under the revised Budget. Speaking in the Parliament, he said that against an estimated deficit of Tk 452.05 billion, the actual total deficit may come to Tk 463.28 billion.
A five percent RD currently prevails on luxury apparels imported by Bangladesh, which is in addition to other taxes payable by importers of luxury garments. The other taxes too prevail at high rates, as the Government wants to discourage imports of these goods.
The hike in RD would become effective after the NBR issues a Statutory Regulatory Order (SRO) to this effect.
According to NBR, there are bulk exports of luxury apparels from Pakistan and India to Bangladesh. Large shopping malls sell these imported salwar kameez and lahenga's at prices starting from Tk 100,000 onwards.
Likewise, fashion houses such as Shoppers World, Vasavi and Zara sell bridal lehangas, sarees and salwar kameez brought in from neighbouring countries at comparatively high prices, NBR said.
The decision to hike RD on four luxury apparel items, along with other 67 luxury items, is aimed at balancing the current fiscal's budgetary deficit, as it would bring some extra revenues to the public exchequer.
Finance Minister AMA Muhith apprehends that current year's budget deficit may rise above five percent of the nation's gross domestic product (GDP), under the revised Budget. Speaking in the Parliament, he said that against an estimated deficit of Tk 452.05 billion, the actual total deficit may come to Tk 463.28 billion.
Fibre2fashion News Desk - India
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