The proposed 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 announce the budget, which will be broadcast live on Bangladesh Betar and Television. The proposed budget totals Tk 7.9 trillion, with a revenue collection target of Tk 4.99 trillion.
The budget is expected to focus on increasing revenue collection while also protecting consumer interests. Changes in customs duties and VAT (Value Added Tax) may result in price hikes or drops for various products.
Increased VAT on Rod and Steel
There are plans to raise VAT on the import of construction rods by 20–23% and on production by 20%. This could lead to a price increase of about Tk 1,400 per ton. The existing fixed import duty may be scrapped.
Currently, the fixed duty on importing steel scrap is Tk 1,500 per ton. Additionally, producing billets and rods from steel incurs a fixed VAT of Tk 2,200 per ton, totaling Tk 3,700 in duties and VAT per ton.
VAT Hike on ACs and Refrigerators
Just six months after doubling corporate tax, there's now a plan to raise VAT on refrigerators and air conditioners from 7.5% to 15%. This could pose a challenge for domestic manufacturers.
Motorcycle and Bicycle Parts
Although an extra 3% import duty on motorcycle engine parts was removed in the last budget, prices did not drop. The upcoming budget may raise duties and VAT. Since 2018, over 10 motorcycle factories—including Honda, Yamaha, Suzuki, and local brand Runner—have been set up in the country.
Cigarettes
In January, prices and duties were increased in all four tiers of cigarettes. A supplementary duty hike of 5–7% per 10-cigarette pack was implemented. The proposed budget may not make further changes to this, but there's a proposal to raise the supplementary duty on cigarette paper from 60% to 100%, which could impact prices further.
Locally Manufactured Mobile Phones
VAT concessions on mobile phone production and assembly are being reduced. A 2–2.5% VAT increase by category is proposed, which may lead to price increases for locally made phones.
Higher Duty on Batteries for Battery-Operated Rickshaws
Battery-operated rickshaws, deemed hazardous and largely unregulated, may become more expensive. The customs duty on 1,200-watt DC motors used in these rickshaws is set to rise from 1% to 15%.
Higher Costs for Cosmetics
Minimum customs value for women's beauty products is set to rise. For instance, the minimum customs value for lipstick may be increased from $20 to $40 per kilogram. Similar hikes are proposed for other cosmetics as well.
Double VAT on Single-Use Plastics
VAT on single-use plastic products like cups, plates, and bowls is being proposed to double to 15%. However, eco-friendly alternatives will remain exempt from VAT, in an effort to promote environmental protection.
Blades
Blades used in salons for shaving may become costlier, as VAT on blades made from stainless steel or carbon steel strips is set to increase from 5% to 7%.
Tableware and Household Items
VAT on plastic tableware, kitchenware, household goods, and hygiene/toilet items is set to rise from 7.5% to 15%, increasing the cost of these everyday items.
Locally Produced Yarn
VAT is being increased on yarn produced in local textile mills. Specific tax on cotton and man-made fiber yarn is going up from Tk 3 to Tk 5 per kilogram, which may raise the prices of locally made garments like towels and lungis.
Helicopters
A new 10% import duty is proposed for helicopters, which were previously duty-free. This would increase the cost of helicopter imports.
Products That May See Price Decreases
(Although the original heading mentions price decreases, no items with clear decreases are specified. However, the following items will likely increase in price despite their mention in a contrasting section.)
Imported Chocolates
The minimum customs value for imported chocolates is set to increase from $4 to $10, making all types of imported chocolates more expensive.
Imported Toys
To protect local industries, the proposed budget will raise the tariff value on foreign toys, which could increase their retail prices.
Marble and Granite
Supplementary duty on imported marble and granite for flooring is set to rise from 20% to 45%, increasing their cost.
Other Items Likely to See Price Hikes
Due to increased tariffs and taxes, prices may also go up for: Barbed wire; Screws of all kinds; Nuts and bolts; Electric line hardware; Pole fittings; Tobacco seeds; and door locks
