The proposed national budget for the 2025–26 fiscal year has been set at BDT 7.9 trillion, which is BDT 70 billion less than the current fiscal year`s budget.
Although the overall size of the budget has decreased for the first time since independence, the government is aiming to boost revenue by increasing VAT, import duties, supplementary duties, and surcharges on various goods and services.
As a result, the prices of several everyday and imported items are expected to rise.
Key Products Expected to Become More Expensive:
Refrigerators and Air Conditioners (ACs):
The Value Added Tax (VAT) on refrigerators and air conditioners is likely to be doubled — from the current 7.5% to 15%. This move will significantly increase the cost of purchasing these appliances.
Locally Manufactured Mobile Phones:
The reduced VAT on domestic mobile phone manufacturing and assembly may be increased by 2% to 2.5%, depending on the production category. This will lead to a rise in the price of locally produced smartphones.
Motorcycles and Spare Parts:
Import duties and VAT on motorcycles and their engine components are expected to be raised again. Although previous reductions had minimal impact on retail prices, the proposed hikes are likely to drive prices higher.
Imported Cosmetics:
The minimum import value for cosmetics such as lipstick, eyeliner, face wash, and other beauty products is set to be increased. For instance, the minimum customs value for lipsticks may rise from USD 20 to USD 40 per kilogram, pushing up retail prices significantly.
Imported Toys and Chocolates:
To protect local industries, the tariff value on imported toys and chocolates will be increased. The minimum customs value for chocolates may rise from USD 4 to USD 10, making imported sweets costlier.
Single-Use Plastic Items:
VAT on single-use plastic products like disposable cups, plates, and bowls is expected to be doubled to 15%. This will raise the price of these commonly used items.
Blades and Razors:
Personal grooming products like blades and razors may become more expensive due to an increase in customs duties.
Construction Materials:
Essential construction items — including rods, marble, granite, barbed wire, screws, bolts, and electric line hardware — may see price hikes due to additional tax and duty increases.
Household Goods and Tableware:
Everyday household items such as tableware and door locks are also on the list of goods likely to be affected by tax hikes.
Nutritional Supplements for Mothers and Children:
Food supplements for pregnant and lactating mothers may face higher import duties, resulting in increased prices for these essential health products.
Beverages and Processed Food Items:
Various beverages, juices, and processed foods could become more expensive under the revised tax structure.
Batteries for Battery-Powered Rickshaws:
Increased duties on battery imports will raise the cost of electric rickshaw batteries, affecting the low-income transport sector.
Service Sector Costs
In addition to product prices, service-related expenses may also go up. The proposed budget includes a plan to double the withholding tax on services provided by convention halls and conference centers.
There are also proposals to increase advance tax on commercial vehicles and surcharges on private cars. Furthermore, a 20% tax deduction may be applied to revenue-sharing or licensing fees paid by telecom infrastructure companies, which could increase service charges in the mobile and broadband sectors.
Despite a reduced budget size, the government`s plan to enhance revenue collection through indirect taxation is likely to pass on the burden to consumers.
From household appliances to basic goods, and even telecom and transport services, the upcoming fiscal year may see widespread price increases across sectors.
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