Speakers for competitive tariff structure for post-LDC period

Speakers at a workshop on Wednesday underscored the need for competitive and rationalized tariff structure for the post-LDC period.

They made the observation at a workshop on "Competitive tariff structure: post-LDC graduation context" organised by Dhaka Chamber of Commerce and Industry (DCCI) in the city, said a press release.

DCCI President Rizwan Rahman said that after the LDC graduation, Bangladesh will have to pay 8 to 16 percent duty to the countries where the country exports.

"Moreover, we will not be able to impose any supplementary (SD) and regulatory duty (RD) to safeguard local industries which is going to be a challenge. At present our average tariff structure is about 13.5 percent which is higher than Vietnam, Taiwan and Malaysia. We need to prepare ourselves in terms of enhancing productivity, cost minimization, industry skill development, ease of doing business and cost of doing business," he added.

Bangladesh Tariff Commission Joint Chief Mashiul Alam highlighted on keynote paper that Bangladesh is a resilient country and last year, the country's export was $50 billion.

"Even after LDC graduation, Bangladesh has the capacity to adopt the challenges. But from now we have to go for regional integration for PTA, FTA and CEPA with potential trading partners to hold the market access,” he said.

“It is true that our tariff line is not very competitive and is higher than many other countries, therefore we have no alternative but rationalize it. In that case sectoral tariff policy for at least five years will be helpful for our exporters and importers," he added.

Bangladesh Trade and Tariff Commission Member Shis Haider Chowdhury said that both government and private sector should work jointly to make the tariff structure competitive.

"Bangladesh will graduate from the LDC category in 2026 which is a good news for the country but recently we are going through a tough time due to Covid-led pandemic, Russia-Ukraine war, worldwide economic recession and natural disaster," He said,

“Previously we were reluctant about FTA but now the government is doing few studies to go for PTA and FTA Bangladesh's tax to GDP ratio is only 7.9 per cent which is not expected. After the graduation we will have to go for tariff rationalization at the same time we will have to concentrate on VAT and tax collection to balance revenue generation,” he added.

"We have to increase our export in line with tariff rationalization. Still we have a big gap between export and import and balance of payment. Government is conducting study to sign FTA with Bhutan, Nepal and Sri Lanka. But, maybe we will be able to continue subsidy in the agriculture sector till 2030," Ministry of Commerce Director-3 (Joint Secretary) WTO Cell Farhana Iris.

DCCI Senior Vice President Arman Haque chaired the workshop where around 50 member companies of DCCI took part in the workshop.