Budget 2025–26: Import duties on artillery, mortars, torpedoes withdrawn

In a move tied to broader trade negotiations with the United States, the interim government has proposed zero import duties on a list of military-grade weapons, including artillery, mortars, and torpedoes, as part of a larger effort to align Bangladesh’s customs policy with international trade expectations.

The decision is included in the FY 2025–26 national budget, which outlines the complete withdrawal of import duties on 110 products, including a wide range of military and defence-related equipment.

Previously, these weapons carried an import duty of 5 per cent. Now, that rate has been reduced to zero per cent, reflecting a strategic shift in Bangladesh’s customs and trade policy.

Among the weaponry now exempt from import duties are: Howitzers (a type of cannon), mortars, rocket launchers, grenade launchers, flame throwers, and torpedo tubes and related systems.

These items are being removed from the customs tariff list entirely for the current fiscal year, signalling a broader realignment of defence procurement and trade diplomacy.

This adjustment comes as part of a larger initiative involving 626 products that are being considered for customs duty exemptions or reductions, aimed at facilitating smoother trade relations – particularly with the United States.

Tied to US trade dialogue

Finance Adviser Dr Salehuddin Ahmed explained the rationale during his budget speech: “As part of the phased reduction of customs duties and tax rates on imported goods and preparation for trade dialogue with the United States, it has been proposed to completely withdraw import duties on 110 products, reduce import duties on 65 products, completely withdraw supplementary duties on 9 products, and reduce supplementary duties on 442 products.”