Where the prices may go up

Finance Minister Abul Hassan Mahmood Ali on Thursday proposed a Tk 7,97,000 crore national budget for FY2024-25 in parliament.

If he gets his budget proposals through, the following items will be costlier during the financial year starting July 1. 

Cigarettes

A supplementary duty of 65.5 per cent has been proposed for three-tier cigarettes. As a result, the price of all types of cigarettes will increase.

Mobile phone

SIM card will be pricier as a raise from Tk 200 to Tk 300 has been proposed. Mobile calls will too be costlier. Currently, a consumer can talk about Tk73 if he recharges his mobile by Tk 100.

The mobile operators deduct the remaining Tk 27 as VAT and supplementary duties. If the 5 per cent supplementary duty on mobile services is increased in the proposed budget, the consumer will be able to talk about Tk 69.35.

Ice cream

Supplementary duty on ice cream may increase from 5 to 10 per cent. As a result, the price of ice cream will increase.

Electric meter

It has been proposed to increase the import duty on pre-paid meters and other electric meters from 15 per cent to 25 per cent. Import duty on pre-paid meter parts and other electric meter parts is recommended to be increased from 10 per cent to 15 per cent.

Water filter

The duty is being increased on the import of household water filters. Due to production in the country, the duty on import of water filters is being increased from 10 per cent to 15 per cent.

Duty-free cars

Currently MPs can import cars with duty-free facilities. The imposition of 25 per cent supplementary duty and 15 per cent VAT has been proposed on import of cars by MPs.

Soft drinks energy drinks

VAT on soft drinks, carbonated beverages, and energy drinks may be increased from 5 per cent to 10 per cent. Besides this, the minimum tax on carbonated beverages may be increased by another 2 per cent to 5 per cent. As a result, these products have to be bought at a higher price.

Cashew nuts

As part of safeguarding cashew nut cultivation in the country, the duty on import of shelled cashew nuts is being increased from 5 per cent to 10 per cent. This may increase the price of cashew nuts.

AC

Considering AC as a luxury, VAT on compressors and all types of materials used in AC production in the country is being increased from 5 to 7.5 per cent. So, the price of AC may increase. The cost of producing refrigerators will increase as VAT on AC sales increases from 5 per cent to 7.5 per cent.

LED bulb

The price of LED bulbs is likely to increase as the duty is being increased by 10 per cent on the import of materials for the production of LED bulbs and energy-saving bulbs.

Conversion cost to CNG-LPG

The duty on import of kits, cylinders and other machinery and parts used for vehicle CNG-LPG conversion is being increased from 3 per cent to 5 per cent. Due to this the car conversion may become costlier.