Commodities likely to see price hike and fall

Finance minister AHM Mustafa Kamal has placed budget for 2022-23 fiscal year in parliament on Thursday. 

Due to imposition of supplementary duty, import duty and Value Added Tax, prices of the some products may go up while prices of some will fall as government is going to reduce the rate of Value Added Tax (VAT) on some products in FY 2022-2013. 

Here are the lists of the products

Price hike

Refrigerator

The finance minister has proposed “Withdrawing full exemption and imposition of 5 per cent VAT at the local manufacturing stage on refrigerators and freezers and to continue existing exemption facilities on imported and local purchase of raw material and equipment till 30 June 2023.”

Mobile phone set

The prices of mobile phone sets may go up as the finance minister has proposed to withdraw the existing 5 per cent VAT exemption at trading stage of mobile phone sets.

Cigarette/ Bidi

The prices of Cigarette and bidi may increase.

Coffee

In the interest of revenue protection, the government has proposed to impose 20 per cent supplementary duty on Processed and Ready to Consume Coffee at the import stage.

Battery charger

The finance minister has proposed to increase the import duty on Cellular Phone Battery Charger from 15 per cent to 25 per cent in order to further develop the domestic cellular phone manufacturing industry.

Water purifier

The prices of water purifiers may increase. The finance minister said, “I am proposing to increase the import duty on domestic type water purifying apparatus / machine from 1 per cent to 10 per cent, which will make the total tax incidence equal.”

Imported luxurious birds

The finance minister has said the country is importing luxurious birds, which attracts 5 per cent import duty.

Laptop

For the protection of domestic computer/laptop and ICT product manufacturers, the government has proposed to expand the concession facility for import of raw materials for computer accessories and ICT industry.

Luxury cars

The government has recommended to increase the total tax incidence by imposing supplementary duty on high-end luxury motor vehicles and jeeps along with chandeliers and light fittings at the import stage. 

Optical fiber cable, broadband

A 10 percent supplementary duty on the import of optical fiber cable has been proposed in the new budget for FY 22-23. 

First-class train travel

The government is planning to impose a 15 percent VAT on first-class train tickets.

Price fall

Restaurant food

The finance minister proposed five per cent VAT on both AC and Non-AC restaurants instead of 10 per cent VAT on AC restaurant and 5 per cent VAT on non-AC restaurant.

However, hotels with three or more star, and restaurants, where alcohol is served, will have to pay 10 per cent VAT.

Animal feeds

The finance minister proposed to give VAT exemption at trading stage to those animal feeds which are already enjoying exemption at import and manufacturing stage.

Poultry farms equipment 

Proposal has been made to give advance tax exemption on import of machinery and equipment by registered poultry farms.

Poultry, dairy and fish feed

Proposal has been made to give VAT exemption on manufacturing and trading for poultry, dairy and fish feed products.

Sugar, puffed rice

Proposal has been made to provide VAT exemption at the trading stage for sugar and puffed rice.

Mobile accessories

Proposal has been made to give VAT exemption at manufacturing stage for mobile phone batteries, chargers and interactive displays for the development of information technology and computer industry.

Rod

A proposal has been made to fix VAT at the trading stage for M.S. products at Tk 200 per metric tonne instead of Tk 500 per metric ton.

Towel

Proposal has been made to reduce the existing VAT rate on manufacturing hand towels / paper towels / clinical bed sheets from 15 to 5 per cent.

Yarn

Proposal has been made to reduce VAT on yarn made from man-made fiber and other fibers from Tk six per kg to Tk three per kg.

Braille printing materials

Proposal has been made to give VAT exemption on Braille printing materials for visually impaired people as a social welfare service.

Power Tiller

Proposal has been made to give VAT exemption at manufacturing and trading stage for Power Tiller. 

Wheelchair, hearing aid 

The prices of specialised wheelchair for the physically challenged may fall in the next fiscal year as the finance minister today proposed abolishing all kinds of taxes at the import stage of the item.

Importing aircraft 

Finance Minister AHM Mustafa Kamal has proposed advance tax exemption for aircraft imports by registered companies in the proposed budget for the fiscal year 2022-23.

Owing to this, importing aircraft in FY 2022-2023 is going to be cheaper.

Polyethylene bags, wraps 

The 5 percent existing supplementary duty, or SD, will be waived on all kinds of bags and wraps made from polyethylene, according to the proposed budget for FY23.