In the soon-to-be-presented 2024-2025 fiscal budget, several everyday items might see price hikes.
Finance Minister Abul Hassan Mahmood Ali will present the budget today (6 June) which includes proposed increases in taxes and duties on various products and services.
According to reliable sources at the Ministry of Finance and the National Board of Revenue (NBR), the prices of tobacco products, ice cream, beverages, LED bulbs, and bricks could rise, affecting household budgets across the country.
Smoking may get costlier
Supplementary duty and price levels for cigarette production may be increased. Those who consume these products may face higher costs.
A supplementary duty of 65.5% is proposed for three tiers of cigarettes, potentially raising the price of all cigarette types.
The maximum retail price for 10 grams of jarda is proposed to be Tk48, and for the same amount of gul, Tk 25.
Ice cream and carbonated beverages
VAT on ice cream and carbonated beverages is proposed to increase, potentially raising their prices.
Mobile phone SIM services
The supplementary duty on services provided using mobile phone SIMs may increase from 5% to 20%, raising the cost of mobile calls and internet usage.
VAT on e-SIM provision may increase from Tk 200 to Tk 300.
Medical equipment
The duty on importing medical equipment and tools, which currently enjoy a 1% duty concession for specialised or referral hospitals, is proposed to increase to 10% for over 200 medical devices and tools, potentially increasing healthcare costs for critically ill patients.
Water filters
The import duty on household water filters is set to increase from 10% to 15% due to domestic production.
LED bulbs
To encourage energy-saving, many households use LED bulbs. In this budget, however, the import duty on materials used for producing LED and energy-saving bulbs might increase by 10%.
Cashew nuts
To protect local cashew nut farming, the import duty on shelled cashew nuts is proposed to rise from 5% to 10%, which may increase the price of imported cashew nuts.
Refrigerators and air conditioners
The VAT and duty on compressors and all components used in the production of refrigerators and air conditioners are set to increase, leading to potential price hikes for these appliances.
LRPC wires
Import duty on LRPC wires might increase, raising construction costs.
CNG-LPG conversion kits
The import duty on kits, cylinders, and other parts used for converting vehicles to CNG or LPG is proposed to rise from 3% to 5%, increasing conversion costs.
Generators
With an increase in load-shedding, the use of generators at homes and industries is rising.
The NBR plans to impose a 1% duty on materials or parts used in generator assembly and production, potentially increasing the price of generators.
Raw materials for industry
A 1% duty is proposed on the import of 33 industrial raw materials, including unrefined edible oil, tubes used for producing paper, synthetic corundum, aluminium oxide, ethylene glycol used in PET chips production, aluminium ingots for water motors, fluorescent lamp parts, glass, plastic, and LED bulbs used in TV production, which may lead to price increases.
Economic zones and hi-tech parks
The duty exemption on capital machinery and construction materials imported for industrial establishments in economic zones and hi-tech parks is being withdrawn, with a 1% duty being imposed. Additionally, developers in economic zones will face a 1% duty on imported materials, and duty-free car import facilities for establishments in economic zones are being withdrawn.
Consequently, industrial establishments in economic zones will have to pay other duties and taxes (VAT, supplementary duty, regulatory duty) without exemption.
Tour operator services
The existing VAT exemption on tour operator services may be withdrawn.
VAT for amusement parks and theme parks is proposed to increase from 7.5% to 15%, potentially raising the cost of leisure activities.
Auctioneer services
The VAT for auctioneer services, security services, and lottery tickets may increase from 10% to 15%.
Bricks
The specific tax on bricks is proposed to increase from 10% to 20%, potentially raising construction costs.
