The national budget for the fiscal year 2025–26 will be presented in the National Parliament today, Sunday (June 2), at 3 PM. Finance Advisor Salehuddin Ahmed will unveil the proposed budget, which will be broadcast live on Bangladesh Betar and Television.
The budget outlines an expenditure of Tk 7.9 trillion, with a revenue collection target of Tk 4.99 trillion. It is expected to emphasise increased revenue generation while aiming to safeguard consumer interests. Notable changes in VAT and customs duties may result in both price hikes and reductions across various sectors.
Key Proposals Likely to Impact Prices
Construction Materials
Rod and Steel: VAT on imported construction rods may rise by 20–23%, and on domestic production by 20%. This could drive up prices by around Tk 1,400 per ton.
The current fixed import duty on steel scrap (Tk 1,500/ton) and VAT on billet and rod production (Tk 2,200/ton) may be scrapped or revised.
Home Appliances
Refrigerators & Air Conditioners: VAT may double from 7.5% to 15%, potentially straining local manufacturers and increasing consumer prices.
Motorcycle & Bicycle Parts
Despite earlier duty cuts, prices didn’t fall. The upcoming budget may introduce new duties and VAT on motorcycle components.
Tobacco Products
No further price hikes expected for cigarette packs, but supplementary duty on cigarette paper may increase from 60% to 100%.
Mobile Phones
VAT concessions for local mobile phone production are being reduced. A category-wise VAT hike of 2–2.5% is expected, likely increasing prices.
Battery-Operated Rickshaws
Customs duty on 1,200-watt DC motors may rise from 1% to 15%, making battery-run rickshaws more expensive.
Cosmetics & Beauty Products
Customs value for cosmetics like lipstick may double, from $20 to $40 per kg, leading to higher prices for imported beauty products.
Single-Use Plastics
VAT on plastic items such as disposable cups, plates, and bowls may double to 15%. However, eco-friendly alternatives will remain VAT-exempt.
Personal Care Items
VAT on salon blades made from stainless or carbon steel may increase from 5% to 7%.
Household & Kitchen Items
Plastic tableware, kitchenware, and hygiene products could see VAT rise from 7.5% to 15%, impacting everyday household expenses.
Textiles
VAT on yarn from local mills is expected to increase. The specific tax on cotton and synthetic yarns may rise from Tk 3 to Tk 5 per kg, potentially raising the cost of local garments such as towels and lungis.
Helicopters
A new 10% import duty is proposed for helicopters, which are currently duty-free.
Products Likely to Become More Expensive
Despite references to possible price drops, the proposed budget largely signals increased costs for:
- Imported Chocolates: Minimum customs value set to rise from $4 to $10 per kg.
- Imported Toys: Tariff value hikes are intended to protect local manufacturers.
- Marble & Granite: Supplementary duty may increase from 20% to 45%.
- Other Goods: Prices could also rise for barbed wire, screws, nuts and bolts, electric hardware, pole fittings, tobacco seeds, and door locks.
This proposed budget, with its emphasis on raising VAT and duties across key sectors, may result in increased living costs for consumers while aiming to boost government revenue and promote local industry.
