Proposed National Budget 2024-2025: Potential Key Changes in Prices Due to Proposed Duties and Taxes3 min read

Finance Minister Abul Hassan Mahmood Ali has proposed a Tk 7,96,900 crore (approximately $7.97 billion) budget for the fiscal year 2024-25 at the parliament today. The proposed budget introduces various changes in duties and taxes that will affect the prices of numerous products and services.

Prices Likely to Increase

• Phone and Internet Services: The proposed increase in supplementary duty may lead to higher costs for SMS, call rates, and internet services.
• Water Filters: Import duty on household water filters is proposed to increase from 10% to 15% to support local manufacturers, potentially raising prices.
• Oils: Prices of furnace oil, lubricants, mineral lubricants, and base oil are expected to rise.
• Cigarettes: A supplementary duty hike of 60% to 65.5% on various categories of cigarettes will increase their prices.
• Power Plants: Import duty on equipment and materials for the Rampal power plant and other power-generating stations is set to increase from 0% to 5%.
• Economic Zones: A 1% customs duty is proposed on the import of capital machinery and construction materials, replacing the previous duty-free status.
• Air Conditioners and Refrigerators: Increased import duties on compressors, steel sheets for AC production, and raw materials for refrigerators may lead to higher prices. The government has proposed imposing a 7.5% VAT on ACs and 7.5% VAT on refrigerators and freezers.
• CNG Conversion Kits and Cylinders: Import duty is proposed to increase from 3% to 5%, potentially raising costs in this sector.
• LED Bulbs: A proposed 10% import duty on materials for manufacturing energy-saving bulbs may raise the price of LED bulbs.
• Cashew Nuts: Import duty on shelled cashew nuts is proposed to increase from 5% to 10% to protect the domestic industry, which may lead to higher prices.
• Other Products: Prices may also increase for products such as ice cream, carbonated beverages, amusement parks, theme parks, and tourism services due to the proposed VAT on these sectors. The government proposed increasing SD on ice cream to 10% from the existing 5% and making it 30% for carbonated beverages from the current 25%.

Read more: How Citytouch Led Digital Banking Initiatives Of City Bank In 2023

Prices Likely to Decrease

• Essential Commodities: Import duty reductions on 30 essential commodities, including rice, edible oil, sugar, chickpeas, milk, and wheat, may lower prices.
• Aircraft Engines and Propellers: VAT withdrawal on imports of aircraft engines and propellers aims to support the aviation sector.
• Powdered Milk: The withdrawal of a 20% supplementary duty on imported packaged powdered milk may reduce its price.
• Chocolates: The supplementary duty on chocolate imports is proposed to decrease from 45% to 20%, potentially lowering prices.
• Laptops: VAT withdrawal and a reduction in import duty from 31% to approximately 20.50% on laptops aim to curb the import of used laptops and reduce costs.
• Motorcycles: Reduced import duty on engine parts may decrease the price of domestically manufactured motorcycles.
• Dengue Test Kits: Exemptions from import duty, VAT, and advance tax on rapid dengue detection test kits, dengue reagents, and platelet and plasma test kits are proposed.
• Kidney Treatment: Import duty on dialysis filters and dialysis circuit products is proposed to be reduced from 10% to 1%.
• Cancer Treatment: An import duty waiver on some cancer treatment equipment is proposed.
• Carpets: Import duty on polypropylene yarn, the main raw material for making carpets, is proposed to decrease from 10% to 5%.
• Electric Motors: A subsidy is proposed to boost the import of parts used in electric motor production.
• Methanol: Import duty on methanol, used in industries such as medicine, washing plants, and paint, is proposed to be reduced from 10% to 5% if imported in bulk.

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