Finance Adviser Salehuddin Ahmed has proposed increases in duties and taxes on several products in the proposed budget for the fiscal year 2025–26.
He presented the budget in a televised address to the nation on Bangladesh Television (BTV) today, Monday, at 3:00pm.
The proposed duties and taxes in the budget take effect immediately, which means prices could rise as a result of the increased tariffs. Generally, the impact of tariff hikes is quickly felt in the market, whereas the effect of reductions takes longer.
A review of the budget speech, the Finance Bill, and instructions issued by customs officials shows that duties on several products have been increased.
Prices likely to increase
Mobile phones
The VAT exemption benefits for mobile phone manufacturing and assembly in the country have been slightly reduced, although the duration of the benefit has been extended. Due to this reduction, mobile phone prices may rise.
Washing machines, blenders
VAT exemption benefits have been slightly reduced for the production of washing machines, microwave ovens, blenders, juicers, irons, rice cookers, pressure cookers, and similar appliances.
Plastic utensils
VAT on household plastic items, including plates and dishes, has been doubled to 15 per cent. However, environment-friendly utensils are exempt from VAT.
LPG cylinders
The local-level VAT exemption for Liquefied Petroleum Gas (LPG) cylinders has been slightly reduced, although the benefit period has been extended. As a result, LPG cylinder prices may increase.
Imported chocolate
The customs valuation for some products has been increased, including foreign chocolate, which will now be assessed at USD 10 per unit instead of USD 4. This will increase import costs.
Lipstick
The customs valuation has been significantly raised for cosmetics used on the lips, eyes, and face. Consequently, higher import taxes will be collected, and prices are expected to rise.
Razor blades
The cost of shaving is likely to rise, as the VAT on locally produced blades has been increased by 2.5 percentage points to 7.7 per cent.