The National Board of Revenue (NBR) has brought some changes in VAT and duties on essential commodities and commonly-used products to achieve its revenue targets in the national budget for the next fiscal year.
These changes may cause corresponding fluctuations in market prices.
In the proposed budget for the fiscal year 2026-27, a number of items have seen increased tariffs, which may lead to higher household expenses.
The budget also includes a series of tax and duty measures that are expected to reduce the prices of a wide range of locally-manufactured products and essential goods.
The budget is the first of the current BNP-led government since it assumed office following the February 12 general election.
Among the products likely to become cheaper are locally produced air-conditioners, refrigerators, and mobile phones, as well as laptops, computers, washing machines, dishwashers, geysers, blenders, juicers, cookers, water purifiers, and water heaters.
The finance minister also proposed reducing the source tax rate on 60 essential commodities, including paddy, rice, wheat, potato, livestock, poultry, fish, onion, garlic, ginger, salt, sugar, edible oil, and seed.
To lower the market prices of baby food, the government slashed the import duty on its production ingredients from 15 per cent to 10 per cent, classifying them as industrial raw materials.
The budget also proposed tax benefits for garment waste (jhut), solar equipment, rooftop solar installations, electric vehicles, and EV charging equipment, which may help lower their prices.
In the healthcare sector, the prices of 68 categories of medicines, cardiac stents, eye lenses, kidney dialysis equipment, and infant formula are expected to decline.
Consumers may also benefit from the lower prices of dates, livestock and poultry products, fish products, locally produced edible oil, zinc sulphate fertiliser, pesticides, crop protection chemicals, veterinary medicines, and spices.
Other products that may become cheaper include gold and gold jewellery, lipstick, packaging materials, semiconductor raw materials, mobile network services, transport services, vehicle rental services, detergent, tyres and tubes, skincare products, beauty products, and coffee.
However, the budget proposes higher taxes and duties on several items, a move likely to push up their prices.
The products include cigarettes, nicotine pouches, domestically produced alcohol, steel rods, and other steel products.
The imported products expected to become more expensive include cashew nuts, man-made fibre, gypsum boards and sheets, cold-rolled coils and sheets, washing machines, paper products, transformers, copper wires and tubes, and maize starch.
The prices of mobile SIM cards and composite LPG gas cylinders are also expected to increase under the proposed tax measures.
The government expects these fiscal adjustments to support domestic industries, encourage local production, and strengthen revenue collection while providing relief on selected consumer and industrial products.
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