Nestle Bangladesh Limited urged the National Board of Revenue to reinstate the 5 per cent customs duty on the import of malt extract — used for food preparations for infants and children.
In the proposed budget for the financial year 2025-26, the interim government raised the customs duty to 15 per cent for the import of the malt extract by the Industrial IRC Holder and VAT Compliant Food Processing Industries.
In a letter to NBR chairman Abdur Rahman Khan on Sunday, the NBL stated that although breastfeeding is vital, 40 per cent of children in Bangladesh depend on infant or baby milk.
Raising the customs duty would increase retail prices of infant or baby milk, and low-income families might turn to unsafe alternatives to unregulated products, which might impact baby nutrition, the letter stated.
The letter also stated that the hike in prices may adversely affect the working women’s affordability, and might even jeopardise their employment continuity.
Due to rise in customs duty, the industry might shift from food processing to importing finished goods, leaving no option but to implement job cuts.
