With the announcement of the proposed national budget for 2020-21 fiscal year, finance Minister AHM Mustafa Kamal has brought some changes in imposing VAT and Supplementary Duty (SD) on different products and imported goods which may increase prices of some items and reduce prices of some others.
Items which may become costlier:
Furniture: VAT on furniture sale to see 2.5% hike.
AC launch ticket: VAT on AC launch ticket will be doubled to 10% from 5%.
Vehicle registration, renewal and other services: 15% supplementary duty (SD) was proposed hiking from existing 10% on all BRTA services.
Chartered airplanes and helicopters: supplementary duty (SD) hiked to 30% from existing 25%.
Mobile services: SD hiked to 15% from existing 10% on all SIM/RIM cards, voice call and internet.
Imported cell phones: Existing duty rate proposed to be hiked.
Cosmetics: SD doubled from existing 5% to 10%.
Ceramic sink and basin: 10% SD proposed at the manufacturing end.
Industrial salt: Existing duty rate on industrial salt proposed to be hiked.
Imported honey: 10% hike in customs duty on natural honey and a fresh 15% VAT.
Lightning arrester: Customs duty doubled to 10% from existing 5%.
Local tobacco products: All locally produced tobacco items including cigarette, biri, gul, jorda will see a duty hike in different rate.
Others: Television, online shopping, aluminum products, furnace oil, imported poultry goods, painting charge, cement, printer ink, raw material for glue, and lighting items will also see a hike in duty.
Items to cost less:
Locally produced mustard oil: Total VAT exemption proposed.
Up to 60 AMP solar battery: VAT exemption proposed for IDCOL partner organizations.
Potato flakes made of locally produced potatoes: VAT rate proposed at 5% from existing 15%.
Maize starch: VAT rate proposed at 5% from existing 15% on local manufacturing.
Covid-19 kits: VAT exemption proposed on import, manufacturing and trading of Covid-19 related kits.
Personal Protective Equipment (PPE) and Surgical Mask (including face mask): VAT exemption proposed on local companies’ manufacturing and trading stages.
Covid-19 medicine: VAT exemption proposed on import, manufacturing and trading.
Sanitary napkin and diaper: Customs duty to come down on import of raw materials.
Gold: Import of gold bar exempted from 15% VAT.
Local items: Locally made fridge, air-conditioner, cell phone, motorbike, refrigerator, plastic goods, LP gas cylinder, automobile products, and solar battery will also see a decrease in duty.
Others: Detergent, ICU equipment, sanitizer, medicines, hand operated agriculture equipment, mild steel sheet, soybean oil, raw materials of production based industry, shoes and sandals, cloths to produce shoes, locally produced potato chips, X-ray plate and medical equipment, compressor raw material, petroleum goods, textile fabrics, garlic, sugar, mustard oil, solar goods, lubricants, disinfectant spraying machine will see reduced duty.
