To stabilise the market for essential goods and curb high inflation, taxes on the supply of at least 27 essential items and food grains have been reduced in the budget proposed for the fiscal year 2024-25.
The items expected to see price reductions include onions, garlic, chickpeas, rice, potatoes, lentils, edible oil, sugar, ginger, turmeric, dried chilies, pulses, flour, wheat, salt, pepper, cardamom, cinnamon, and dates, among others.
However, market observations tell a different story. A survey of the capital's markets reveals that most items are still being sold at their previous prices. Only a slight decrease has been noted in the prices of lentils, sugar, chickpeas, potatoes, and onions.
Traders claim that the budget's impact has not yet fully reached the markets. They hope that prices of these essential items may decrease in the coming days.
On the other hand, consumers complain that while traders are quick to raise prices in anticipation of tax increases announced in the budget, they are much slower to lower them when taxes are reduced.
Suman Ahmed, shopping at Mirpur's kitchen market, expressed his frustration, saying, "In our country, once prices go up, they never come down. If the price should increase by one taka, it goes up by Tk10. But if it's supposed to decrease by Tk10, it only drops by Tk1. It’s all due to corruption. I can’t even afford potatoes, which are now Tk60/kg. Traders blame the government, but we're the ones suffering. Everyone is busy emptying consumers' pockets."
Kitchen market trader Ali Hossain said, "The budget's impact has not yet been felt in the market. However, the prices of items that are supposed to decrease might do so in a few days. The current stock was bought at the previous prices, so we expect prices to drop once new stock arrives."
Regarding consumer complaints, he said, "We don’t stockpile goods when prices increase. It's the big companies that do that."
In the proposed budget for the fiscal year 2024-2025, the government has reduced the tax on essential goods from 2% to 1%. The general public hopes this will help reduce the persistent price hikes of essential items.
