The prices of products that can be reduced or increased in the budget
In the budget for the next 2022-23 financial year, there may be proposals to impose duties and taxes on various types of products. Besides, there will be duty and VAT exemptions in the public interest or for the protection of domestic industries. Due to these reasons, the prices of many products can go up and down.
On Thursday (June 9) afternoon, the main slogan of the 51st budget of independent Bangladesh is going to be Return to the continuity of development by overcoming the impact of Kovid.
Where the main goal will be capacity development. Returning relief to public life with the stability of the economy by eliminating global risks. The probable size of the budget for the coming 2022-23 fiscal year is 7 lakh 8 thousand 84 crore taka. Where income and expenditure are facing big challenges.
The proposed budget to control inflation is providing various benefits to essential commodities, as well as discouraging imports of luxury goods to protect foreign exchange.
The prices of these products may go up
Importers may impose new tariffs on luxury products such as body sprays, cosmetics, juices, packaged foods, etc. However, in a notification issued on May 23, about 135 HS-coded products such as foreign fruits, foreign flowers, furniture, and cosmetics were subject to 20 percent regulatory duty instead of the existing 3 percent at the import stage. That list could be longer in the proposed budget.
Due to the imposition of additional tariffs, tobacco products may increase this time. Tariffs will be levied according to the slab. According to NBR sources, three lower slabs of cigarettes could lead to higher prices.
Due to the imposition of advance tax, the price of liquor will increase. In the proposed budget, the advance tax on wine import is increasing by 20-25 percent.
Importers may increase the price of smart mobile phones in another phase by imposing tariffs on the protection of domestic products. In that case, the domestic companies are getting benefits.
Luxury cars are being added to the price list. Luxury reconditioned vehicles above 4000 cc are taxed at about 800 percent including supplementary duty, regulatory duty, advance tax, and VAT. It is learned that in the proposed budget, the tax may be one thousand percent or more.
Importers may raise the price of refrigerators and ACs further by raising tariffs. Importers of all types of luxury home appliances can increase the price.
VAT and tax exemptions will reduce the price of products
Laptops, desktops, printers, and other computer and ICT products are now subject to a 5 percent duty on computer equipment. In the proposed budget, there is a proposal to withdraw that duty for the development of local industries. On the other hand, importers will have to pay 20 percent duty on those products. As a result, prices of the local computer and ICT products may go down.
For the same reason, the prices of locally produced agricultural machinery and equipment may go down. Besides, special tax benefits for agri-entrepreneurs are being proposed in the budget.
The domestic car manufacturing industry is getting the benefit of VAT exemption. As a result, in addition to duty exemption on the import of machinery and equipment for making automobiles, a 5 percent VAT exemption may be proposed in the budget. As a result, cars made in the country will be available at a lower price.
Besides, locally manufactured mobile handset manufacturers have been enjoying huge tariffs and VAT benefits. Where 56 percent duty tax is applicable on imported handsets. There is a tax of 13 percent and 16 percent for locally produced and assembled handsets, respectively. The government is going to take a decision to continue this facility in the proposed budget. As such, feature phone button phones may be available at a lower price in the next financial year as compared to imported mobile phones.