In the national budget, the government has proposed changes to duties that will affect the prices of essential products. Here are the anticipated changes in the prices of various products.
Prices THAT may go up:
Ice cream and carbonated beverages: The prices of ice cream and carbonated beverages are expected to increase as the government plans to raise the supplementary duty (SD) on these two items by 5.0 per cent.
Oil: The prices of furnace oil, lubricants, mineral lubricants, and base oil may increase.
Air Conditioners: Duties on compressors and materials used in AC production are set to rise, increasing AC prices.
Refrigerators: VAT exemption on refrigerator production ended on 30 June. The VAT rate may rise from 5.0 per cent to 10 per cent, increasing refrigerator prices.
Generators: A 1.0-percent duty on materials and parts for generator assembly and manufacture is proposed, likely increasing generator prices.
CNG-LPG conversion: Import duty on parts for converting vehicles to CNG-LPG may rise from 3.0 per cent to 5.0 per cent, increasing conversion costs.
Mobile phone calls and internet services: Supplementary tax on mobile phone calls and internet services has been increased. Currently, there is a 15-percent VAT imposed on talk time and internet services. This has been increased by an additional 5.0 per cent, bringing it to a total of 20 per cent. This amount is deducted when recharging a mobile phone. Currently, to get talk time worth Tk 100, one needs to recharge Tk 133.25. Due to the new proposal, to get talk time Tk 100, one will have to recharge Tk 139. In simpler terms, if you recharge Tk 100, the government will receive Tk 28 in taxes and duties. The customer will receive the remaining amount as talk time.
Cigarettes: Supplementary duty and price levels on cigarette production are set to shoot up, pushing up cigarette prices.
Cars: Lawmakers currently can import cars duty-free. The budget has proposed a 25-percent supplementary duty and 15-percent VAT on car imports for parliamentarians, while adding conditions to exempt hybrid and non-hybrid cars, likely hiking luxury car prices.
Security Services: VAT on security services may rise from 10 per cent to 15 per cent, soaring costs in cities like Dhaka.
Lease of Haat-Bazar: Lease prices at district, upazila, and union levels, along with land registration fees, will increase slightly to boost non-tax revenue.
Hospital Equipment: Duty on over 200 medical devices and equipment may increase from 1.0 per cent to 10 per cent, raising medical expenses for critically ill patients.
Spinal Needle product: The government proposes to create new HS code of the product and fix 5.0 import duty. Hence the price of spinal needle may rise.
Water Purifier: Import duty on household water filters may increase from 10 per cent to 15 per cent, raising prices.
LED Lights: A 10-percent increase in duty on materials for LED and energy-saving bulbs will likely increase prices.
Cashew Nuts: Import duty on shelled cashew nuts may increase from 5.0 per cent to 10 per cent to protect local cultivation, raising prices.
Imported Meters: The import duty on prepaid kilowatt hour meters and other electric meters has been increased from 15 per cent to 25 per cent i.e. same as normal meters and the import duty on prepaid kilowatt meter parts and other electric meter parts has been hiked from 10 per cent to 15 per cent. Hence the prices of such items may go up.
Electric Motors: Subsidies on parts used in manufacturing electric motors will reduce their prices.
Plant, Equipment and Erection Material: By various power generation companies, Rampal power plant and rental power companies 0 per cent import duty is levied on import of plant, equipment and erection material which is proposed to be increased to 5.0 per cent.
Prices that may go down:
Daily Essentials: Withholding tax on the supply of at least 30 essential commodities and foodgrains will be reduced from 2.0 per cent to 1.0 per cent. This includes items like onion, garlic, rice, wheat, maize, flour, potatoes, lentils, edible oil, salt, sugar, and various spices, potentially lowering their prices.
Aircraft Engines and Propellers: A proposal has been made to withdraw VAT on the imports of aircraft engines and propellers, considering the potential growth of the aviation sector.
Kidney Dialysis Filters: Dialysis filter and dialysis circuit are two essential components used in kidney patient dialysis. Import duty on filters and circuits for kidney dialysis will be reduced from 10 per cent to 1.0 per cent, decreasing dialysis costs.
Carpets: Import duty on polypropylene yarn for making carpets will be reduced from 10 per cent to 5.0 per cent, lowering the prices of locally-made carpets.
Powdered Milk: Duty on packaged milk powder will be reduced from 89.32 per cent to 58.60 per cent, lowering its price. Bulk importers' tax will be 37 per cent.
Imported Chocolates: Supplementary duty on chocolate imports will be reduced from 45 per cent to 20 per cent.
Motorcycles: Import duty on CKD engine parts of domestically made motorcycles will be reduced.
Laptops: Total customs duty on laptops may be reduced from 31 per cent to 20.50 per cent.
Construction Materials: Duty on manganese used for making rods, bars, and angles in construction will be reduced from 10 per cent to 5.0 per cent.
Dengue Kits: Concessional facilities for importing dengue kits will reduce their cost. NS-1 antigen test costs are set at Tk 100 for government hospitals and Tk 300 for private hospitals.
Cancer Treatment Costs: New raw materials for cancer treatment will be added under concessional import facilities.
Rods, Bars, and Angles: The import duty on manganese, which is used as raw material for the production of rods, bars, and angles, may be reduced from 10 per cent to 5.0 per cent. This could lead to a decrease in the prices of iron products.
Switches and Sockets: The prices of switches and sockets used in households are also likely to decrease, as the import duty on raw materials used in the production of domestically-produced switches, sockets, and holders has been reduced.
Electric Motors: Concessionary benefits are being provided for the import of parts used in the production of electric motors, which will result in a reduction in the prices of electric motors.
Methanol: Methanol, a raw material used in industries such as medicine, washing plants, and paint, will now have its import duty rate reduced from 10 per cent to 5.0 per cent when imported in bulk.
sajibur@gmail.com