The prices of numerous products in the country’s market are set to witness either a rise or a fall in line with the national budget for the upcoming 2022-23 financial year.
Finance Minister AHM Mustafa Kamal presented the proposed Tk 6,78,064 crore national budget for FY2022-23 in parliament on Thursday.
The new prices of these products will come into effect once the parliament passes the proposed budget.
Prices up
The prices of Covid-19 test Kit, PPE, protective garments, plastic face shields, medical protective gear, protective spectacles, and goggles for medical use and mask will go up as the finance minister has proposed to withdraw VAT exemption at manufacturing and trading stage.
The prices of cars will increase as per the proposed budget. The vehicle supplementary duty has been increased from 200 per cent to 350 per cent for vehicles with cylinder capacity from 2001cc to 3000cc. The supplementary duty on vehicles ranging from 3001cc to 4000cc has been increased from 350 per cent to 500 per cent.
But the supplementary duty on vehicles above 4000cc has been kept the same as before — 500 per cent.
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In case of import of motorcycles with engine capacity above 250 cc, the minister proposed to impose 100 per cent supplementary duty on four stroke ones and 250 per cent supplementary duty on two stroke ones — which will push their prices up.
Mobile phones will cost more in the next fiscal year as the finance minister proposed to withdraw the existing 5 per cent VAT exemption at trading stage.
Laptop prices will also increase as the finance minister has proposed to impose a 15 per cent VAT on imports. This will take the total tax imposed on imported laptops to 31 per cent.
Computer printer, toner, inkjet, portable data processor will get costlier as 15 per cent VAT on them has been proposed.
Prices of mobile phone sets are likely to go up as the minister proposed to withdraw the existing 5 per cent VAT exemption at trading stage. Mobile and other battery chargers will also become costlier as their customs duty has been increased to 25 per cent from 15 per cent.
In line with the minister's proposal, cigarette prices will also rise. The minimum price for 10 sticks of low-tier cigarettes will be set at Tk 40 (Tk 1 hike from FY2021-22), with a supplementary duty of 57 per cent. The minimum price for 10 sticks of mid-tier cigarettes will be set at Tk 65 (Tk 2 hike), high-tier cigarettes at Tk 111 (Tk 9 hike), and premium tier cigarettes at Tk 142 (Tk 7 hike), with a supplementary duty of 65 per cent on all three tiers. But the prices of non-filtered and filtered bidis will remain same.
Train tickets will get costlier as the minister proposed to impose 15 per cent VAT on first class railway services in addition to air-conditioned services.
Imported cheese and curd prices will go up as 20 per cent supplementary duty on them has been proposed.
The prices of lifts and skip hoists will also rise as 5 per cent customs duty has been proposed.
A 10 per cent customs duty will push up the prices of printing plates.
Solar modules or panels will get a bit pricier as 1 per cent customs duty on them has been proposed.
Imported paper cup, plate, bowl will get costlier due to a 20 per cent supplementary duty.
Prices of four stroke engine cylinder with capacity from 251cc to 800cc and above 800cc will go up as supplementary duty on them has been hiked to 100 per cent and 250 per cent, respectively, for zero per cent.
Prices of two stroke engine cylinder with capacity from 251cc to 500cc, from 501cc to 800cc and above 800cc will go up also as supplementary duty on them has been hiked to 100 per cent, 250 per cent and 250 per cent, respectively, from zero per cent.
Imported optical fibre cables will get costlier as 10 per cent supplementary duty on them has been proposed.
Crude tar will get pricier as a 15 per cent import duty on them has been proposed, up from existing 5 per cent.
Processed and ready to consume coffee and roasted chicory and other roasted coffee substitutes and extracts, essences and concentrates will become costlier as the finance minister proposed a 20 per cent supplementary duty at the import stage.
Prices of domestic water purifiers will go up as the import duty on them has been proposed to increase from 1 per cent to 10 per cent.
Besides, the prices of luxury cars, locally manufactured refrigerators and freezers, e-SIM, microbus, three-wheelers, imported luxurious birds, kilowatt-hour metre, gas lighter, shaving materials, cleaning materials, cosmetics, air freshener, anti-bacterial products, photographic plates, and GI fittings will also rise.
Prices down
Prices of sugar and puffed rice will go down as the minister proposed VAT exemption at the trading stage.
Restaurants will cost less as 5 per cent VAT on both AC and non-AC establishments (except restaurants in hotels with three or more stars and restaurants where alcohol is served) has been proposed, instead of 10 per cent and 5 per cent, respectively.
Poultry feed will get cheaper as Advance Tax exemption on import of machinery and equipment by registered poultry farms has been proposed.
Wheat gluten, used in food preparation of domestic poultry industry, will be cheaper as well as the minister has proposed to reduce the import duty from 25 per cent to 15 per cent in order to reduce production cost.
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Cattle feed prices will go down as the import duty on “sugarcane molasses,” a major cattle feed ingredient, has been proposed to reduce from 15 per cent to 10 per cent.
MS bars and rods, imported by Industrial IRC holder VAT compliant electrode or wire drawing manufacturing industry, will get cheaper as the customs duty on them has gone down from 10 per cent to 5 per cent.
Galvanized iron sheet or steel products will see a price cut as it has been proposed to reduce the rate of tax from 5 per cent to 3 per cent on import of their raw manufacturing materials, HR coil and zinc.
The minister also proposed to fix VAT at the trading stage for MS products at Tk 200 per tonne instead of Tk 500 per tonne, which will also make them a bit cheaper.
Hearing aid prices are likely to drop as the customs duty on their air-zinc battery has been decreased to 5 per cent from 25 per cent.
Wheelchair prices will also reduce as the finance minister has proposed to exempt all types of VAT and taxes at the import stage.
Power tillers will get cheaper as the minister proposed VAT exemption at manufacturing and trading stage.
Prefabricated buildings of wood will become cheaper with as the customs duty has been decreased from 25 per cent to 10 per cent.
Prices of cashew nuts will go down as the customs duty on the shelled ones and those in shell has been decreased to 5 per cent and 1 per cent, respectively, from 25 per cent.
Hand towels, paper towels and clinical bed sheets will become cheaper as the finance minister has proposed to reduce the existing VAT rate on manufacturing from 15 per cent to 5 per cent.
All types of Polythene and plastic bags will cost less in line with the proposal to withdraw the existing 5 per cent supplementary duty.
Besides, the prices of locally manufactured motor car and motor vehicles up to 2,500cc, braille printing materials, launch fare, vanilla, manmade fibre, LED television, pet food and carbon dioxide will also fall.
