The price of products will increase

Finance Minister Abul Hasan Mahmud Ali presented the proposed budget for the financial year 2024-25. In the new budget, the duty-tax on several goods and services has been increased. As a result, analyzing the information received from the budget, it has been found that the list of products with price increase is getting longer.

The price of products will increase

As always, the supplementary duty and price level may be increased at the manufacturing stage of cigarettes. A supplementary duty of 65.5 percent has been proposed on three-tier cigarettes. As a result, the price of all types of cigarettes may increase. Besides, the maximum retail price of 10 grams of jorda has been proposed at Tk 48 and the same amount of gul at Tk 25. Those who are in the habit of consuming Pan-Jorda will increase their expenses.

The duty is being increased on the import of household water filters. Due to production in the country, the duty on import of water filters may be increased from 10 percent to 15 percent. Many people use LED bulbs at home to save electricity bills. Import duty on LED bulbs and energy saving bulbs may be increased by 10 percent.

On the other hand, the import duty on shelled cashew nuts is being increased from 5 percent to 10 percent as part of protecting cashew nut cultivation. As a result, the price of imported cashew nuts may increase.

VAT and duty are being increased on compressors and all types of materials used in the production of fridge-ACs in the country. Therefore, the price of AC and refrigerator may increase. LRPC may increase tariffs on its imports. This will increase the cost in the construction sector.

The duty on import of kits, cylinders and other machinery and parts used in conversion of vehicles to CNG-LPG is being increased from 3 percent to 5 percent. Vehicle conversion costs may increase. Again, the use of generators in homes or industries is increasing to deal with load shedding. NBR has also looked there. One percent duty is being levied on the import of materials or parts used in the assembly and manufacture of generators. The price of generator may increase in the domestic market. The addition of 15 percent VAT and 5 percent advance income tax on imported mackerel fish may increase the price.

One percent duty is being levied on the import of raw materials for 33 items used in the industry. The list includes crude edible oil, tube listening gel used in the production of shirish paper, artificial corundum, aluminum oxide, ethylene glycol used in the production of pat chips, aluminum ingots used in the production of water motors, fluorescent lamp parts, glass, plastic, LED bulbs used in the production of LED televisions, lamps. The price of used aluminum alloy etc. may go up.

In economic zones and hi-tech parks, import of capital parts and construction materials of industrial establishments is being withdrawn and 1 percent duty is being imposed. Apart from this, one per cent duty is imposed on the materials brought by the developer for the development of the economic zone and the opportunity to import cars at the duty-free facilities of the establishments located in the economic zone is being cancelled. As a result, companies setting up industries in the economic zone have to pay other duties (VAT, supplementary duties, regulatory duties) in addition to duties.

It may be proposed to withdraw the existing tax exemption on tour operator services. In amusement parks, theme parks, Musak is proposed to be 15 percent instead of 7.5 percent. As a result, the cost of roaming may increase. Auctioneers, security services and lottery tickets may be offered 15 percent tax instead of 10 percent. The existing specific tax on bricks may be proposed to be increased from 10 to 20 percent. As a result, construction costs will increase. VAT may be proposed to be increased on ice cream and carbonated beverages. As a result, the price of ice cream and soft drinks will increase.

Supplementary duty may be increased by 5 percent to 20 percent against the services provided in the use of mobile phone SIM. This may increase the cost of mobile calls and internet usage. In case of e-SIM supply, it has been proposed to make the fee Rs 300 against Rs 200.

Importation of medical devices and equipment is allowed at 1 percent duty on referral or specialized hospital duty free facility subject to compliance of certain conditions. In the budget, it may be increased to 10 percent in case of import of more than 200 medical devices and equipment. As a result, the medical expenses of critically ill patients may increase.