On Thursday, June 11, around 3 PM, he began presenting the budget proposal. This is the first budget of the BNP government's current term. In this budget, proposals have been made to provide tax and duty exemptions on various products and services. This will create an opportunity to reduce the prices of these products.
Again, proposals have been made to increase taxes and duties on some products and services. This raises the risk of price increases for these products. The tax and duty proposals in the budget become effective immediately upon announcement.
Overall analysis shows that the number of products with reduced taxes and duties is higher.
Prices may increase
Cigarettes
The Finance Minister has proposed setting the minimum retail price of cigarettes at 62 Taka per 10 sticks for the low tier, 92 Taka for the medium tier, 160 Taka for the high tier, and 210 Taka for the very high tier. This will increase the price of cigarettes.
Referring to nicotine granules and nicotine pouches as extremely harmful to public health, the Finance Minister is proposing to impose a 350 percent supplementary duty on them.
Oil-powered vehicles
To reduce the tendency to use environmentally harmful diesel, octane, or petrol-powered vehicles, it has been proposed to increase the tax burden on imported cars with mid-range internal combustion engines of 1,200 to 1,600 cc (engine capacity) from 132.36 percent to approximately 156 percent. As a result, the prices of these cars will increase.
Foreign cashew nuts
To encourage domestic cultivation and production, the import duty on unprocessed and processed cashew nuts has been increased from 1 percent and 5 percent respectively to 25 percent. However, for domestic producers, the import duty on unprocessed cashew nuts has been set at 15 percent. Overall, the price of foreign cashew nuts will increase.
Foreign pangasius fillet
To protect the domestic fish processing industry, a 20 percent supplementary duty has been imposed on imported pangasius fish fillets.
Foreign gas cylinders
Value Added Tax (VAT) has been imposed at the import stage on the import of composite LPG (Liquefied Petroleum Gas) cylinders. This may increase their price.
Foreign honey
The minimum assessable value for importing natural honey from abroad has been increased by 2 dollars per unit to 7 dollars. This will result in higher taxes and duties on importing this honey, which may increase its price.
Foreign betel nut
The minimum assessable value for importing betel nut from abroad has been increased by 0.25 dollars per unit. This will result in higher taxes and duties on importing this betel nut.
Foreign food items
The assessable value has been increased at various rates for importing items like sugar confectionery, coffee, prepared foods, etc. This will increase the tax burden on importing these food items.
Foreign lip liners and gels
The assessable value for importing lip liners, lip gels, and similar products has been increased.
Rod (Rebar)
VAT has been increased on various raw materials used for making rods. This may increase the price of rods.
Others
Due to increases in taxes, duties, and assessable values, the prices of foreign tiles, sanitaryware and basins, foreign foam, foreign microwave ovens, bicycles and parts, toys, etc., may increase.
Prices may decrease
60 essential commodities
The Finance Minister has proposed reducing the tax at source rate on 60 essential commodities including paddy, rice, wheat, potatoes, livestock, poultry, fish, onions, garlic, ginger, salt, sugar, edible oil, seeds, etc., from 5 percent, 2 percent, 1 percent to 0.5 percent. He said that in contrast to the unbearable price hikes of commodities in past years, this step, in line with the democratic government's election pledge, will bring relief to public life.
Baby food
The import duty on imported baby food preparation materials has been reduced from 15 percent to 10 percent (as industrial raw materials). The Finance Minister said this will reduce the price of baby food in the market.
Cumin, Cinnamon
The 5 percent regulatory duty on spices like cumin, cinnamon, cardamom, cloves, black pepper, coriander, etc., has been completely withdrawn.
Dates
The 5 percent regulatory duty on importing dates has been completely withdrawn. As a result, prices may decrease.
Gold jewelry
The tax at source rate on gold supply has been reduced from 5 percent to 0.5 percent. Previously, VAT was 5 percent. As a result, VAT on gold worth 2.5 lakh Taka used to be 12,500 Taka. Now it has been reduced to 2,500 Taka per bhari (a unit of weight).
Electric vehicles
Various types of benefits have been given for electric vehicles (EVs). This will create an opportunity to significantly reduce the prices of these vehicles. Additionally, major concessions have been given on batteries and other equipment for setting up electric vehicle charging stations. For example, for electric vehicles, the tax burden has been reduced from 93 percent to 64 percent for vehicles valued up to 25,000 US dollars and 80 percent for vehicles valued up to 50,000 US dollars.
Tax concessions have been given for new plug-in hybrid electric vehicles. The amount of advance income tax for electric vehicles has been reduced for registration and renewal with the Bangladesh Road Transport Authority (BRTA).
Laptops and Computers
All import duties, regulatory duties, supplementary duties, and VAT have been withdrawn for importing laptops, desktop computers, servers, computer printers, and computer monitors.
Kidney Dialysis Service
The 15 percent VAT and 5 percent advance income tax on importing dialysis filters have been withdrawn. The Finance Minister said this will reduce the cost per dialysis session for kidney patients by up to approximately 800 Taka.
Medicines
Various types of concessions have been given on importing raw materials for medicines. Additionally, the Finance Minister has provided concessional facilities for importing 9 new raw materials for making cancer drugs.
Musical Instruments
The existing 5 percent regulatory duty on importing musical instruments like guitars, pianos, violins, etc., and their necessary parts has been completely withdrawn.
The existing import duty on importing cinematographic cameras and spare parts for cinematographic cameras and projectors has been reduced from 15 percent to 5 percent.
Others
Due to reductions in taxes and duties and changes in assessable values, the prices of foreign meat, animal feed, Point of Sale (POS) machines, solar power equipment, various cosmetics including lipstick, face wash, and many other products may decrease.
