Govt to cut duties on safety equipment

Ticfa officials speak at a meeting in the capital today. Photo: Anisur Rahman

The government is set to drastically cut duties on imports of safety equipment to make them more affordable to garment makers under pressure to improve their safety standards following Tazreen fire and Rana Plaza collapse.
The National Board of Revenue (NBR) is now at the final stage to cut the duties on the safety equipment, said Commerce Secretary Mahbub Ahmed.  
The duty on imports of the safety equipment was one of the key issues the US raised at the inaugural meeting of the Trade and Investment Cooperation Forum Agreement (Ticfa) today.  
"We have decided to reduce the duties. Different forums inside the country have also made the similar requests," the secretary told reporters at a joint press briefing after the daylong meeting on the Ticfa.
A source in the NBR said an order on the issue might be issued this week.
At present, Bangladesh on average imposes 154 percent duties on the imports of fire equipment such as fire doors, emergency lights and sprinklers. It will be brought down to 15 percent, said the source.
The source added the 15 percent duties will be actually the value added taxes.
Finance Minister AMA Muhith has already consented to the decision. The law ministry is now vetting the issue, said the source on condition of anonymity.
Michael J Delaney, assistant trade representative of the US for South Asia, welcomed the decision immediately.
"I am extremely gratified to know that. This is what the government can do. This will help facilitate to improve the conditions of the factories."