Bangladesh considers duty cuts on tanning chemicals
29/05/2025
Currently, only 27 tanneries benefit from bond facilities allowing duty-free imports, while around 100 others face higher and inconsistent duties. Industry leaders say this creates an uneven playing field and hurts competitiveness.
The proposed changes include cutting duties on six chemicals from 5% to 1%, and reducing the duty on chromium sulphate from 10% to 5%, though a 15% VAT on sulphate may apply.
The Bangladesh Tanners Association (BTA) argues the move is insufficient. Chairman Shaheen Ahmed said total tax on some chemicals reaches nearly 59% and called for a reduction to 7.5%. He added that minor duty cuts would not solve the sector’s deeper issues.
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