In an effort to combat rising food prices, the Bangladeshi government is said to be considering reducing source tax on essential food commodities.
This tax – currently at 2% for essential food supplies such as rice, wheat, onion, edible oil, etc – could be lowered to 1% for fiscal year 2024-25, starting July, 2024.
This proposal comes amidst stubbornly high inflation in the country, with food prices reaching a five-month high of 10.22% in April. This surge disproportionately impacts low-income families, straining their ability to afford basic necessities.
The National Board of Revenue (NBR) is said to be considering this tax cut alongside other budgetary measures.
NRB is also said to be considering lowering the source tax rate on other goods, from 7% to 5%.
This potential cut is one of several measures being considered to address Bangladesh’s rising inflation.
