Raise in customs duty on import of tea sought

Bangladeshiyo Cha (tea) Sangsad proposed an increase in the customs duty on import of tea in the upcoming budget for fiscal year 2015-16.
Ardashir Kabir of Bangladeshiyo Cha Sangsad said the neighbouring country India had imposed 110 per cent customs duty on import of tea while Bangladesh has 84 per cent import duty on the same.
The Cha Sangsad leaders made the proposals at pre-budget meeting with the National Board of Revenue (NBR) at its premises Saturday.
Bangladesh tea producers are facing problems in exporting tea to India due to high import duty.
Production cost of tea has increased from 187 to 200 per cent in Bangladesh as environment of the country is not favourable for tea production, he said.
Cheap import of tea may threaten the local industry, he said.
He proposed increase of duty rationally on import of tea.
The import of cheap and substandard brand of tea increased significantly since 2010 after the government lowered import duty, he added.
In some cases, the tea producers have to sell tea at a lower rate than that of their production cost, he said.
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