The national budget for the fiscal year 2024-25 proposes hikes in duties and value-added tax (VAT) on various products and services, leading to price increases. In contrast, some products will become less expensive due to VAT and duty reductions.
Items to become costlier
Mobile SIM cards: The tax on SIM card sales by mobile operators will increase from Tk200 to Tk300, raising SIM card prices. Currently, a consumer can talk for Tk73 from a Tk100 mobile recharge, with the remaining Tk27 deducted as VAT and supplementary duties. If the proposed budget increases the 5% supplementary duty on mobile services, the talk time will reduce to Tk69.35.
Cigarettes: Supplementary duty and price levels on cigarette production are set to increase, pushing up cigarette prices.
Cars: Lawmakers currently can import cars duty-free. The budget proposes a 25% supplementary duty and 15% VAT on car imports for parliamentarians, while adding conditions to exempt hybrid and non-hybrid cars, likely increasing luxury car prices.
Air conditioners: Duties on compressors and materials used in AC production are set to rise, increasing AC prices.
Refrigerators: VAT exemption on refrigerator production ended on 30 June. The VAT rate will rise from 5% to 10%, increasing refrigerator prices.
Generators: A 1% duty on materials and parts for generator assembly and manufacture is proposed, likely increasing generator prices.
CNG-LPG conversion: Import duty on parts for converting vehicles to CNG-LPG will rise from 3% to 5%, increasing conversion costs.
Security services: VAT on security services may rise from 10% to 15%, increasing costs in cities like Dhaka.
Lease of Hat-Bazar: Lease prices at district, upazila, and union levels, along with land registration fees, will increase slightly to boost non-tax revenue.
Hospital equipment: Duty on over 200 medical devices and equipment may increase from 1% to 10%, raising medical expenses for critically ill patients.
Water filters: Import duty on household water filters may increase from 10% to 15%, raising prices.
LED bulbs: A 10% duty increase on materials for LED and energy-saving bulbs will likely increase prices.
Soft Drinks: VAT on soft drinks and carbonated beverages may rise from 5% to 10%, with a minimum tax increase from 2% to 5%, raising prices.
Cashew nuts: Import duty on shelled cashew nuts may increase from 5% to 10% to protect local cultivation, raising prices.
Items to become cheaper
Daily Essentials: Withholding tax on the supply of at least 30 essential commodities and foodgrains will be reduced from 2% to 1%. This includes items like onion, garlic, rice, wheat, maize, flour, potatoes, lentils, edible oil, salt, sugar, and various spices, potentially lowering their prices.
Motorcycles: Import duty on CKD engine parts of domestically made motorcycles will be reduced, lowering the price of locally produced motorcycles.
Laptops: Total customs duty on laptops may be reduced from 31% to 20.50%, decreasing their prices.
Construction materials: Duty on manganese used for making rods, bars, and angles in construction will be reduced from 10% to 5%, lowering the prices of these materials.
Dengue kits: Concessional facilities for importing dengue kits will reduce their cost. NS-1 antigen test costs are set at Tk100 for government hospitals and Tk300 for private hospitals.
Cancer treatment costs: New raw materials for cancer treatment will be added under concessional import facilities, lowering treatment costs.
Electric motors: Subsidies on parts used in manufacturing electric motors will reduce their prices.
Kidney dialysis filters: Import duty on filters and circuits for kidney dialysis will be reduced from 10% to 1%, decreasing dialysis costs.
Carpets: Import duty on polypropylene yarn for making carpets will be reduced from 10% to 5%, lowering the prices of locally made carpets.
Powdered milk: Duty on packaged milk powder will be reduced from 89.32% to 58.60%, lowering its price. Bulk importers’ tax will be 37%.
Imported chocolates: Supplementary duty on chocolate imports will be reduced from 45% to 20%, decreasing their prices.
