The prices of products are increasing

The proposed budget of Tk 7 lakh 97 thousand crores for the financial year 2024-2025 contains proposals to reduce and increase duties and taxes on various types of products.

The main slogan of the proposed budget presented in the National Assembly on Thursday (June 6) afternoon is the commitment to build a happy, prosperous, developed and smart Bangladesh. In order to accelerate revenue collection and taking into consideration the protection of domestic industries, there is a proposal to increase customs duties in the budget. Due to which the prices of many products are likely to increase.

The prices of goods may increase

cigarettes

As every time in the proposed budget, supplementary duty and price level are being increased at the cigarette production level. A supplementary duty of 65.5 per cent has been proposed on three tier cigarettes. As a result, the price of all types of cigarettes will increase. The maximum retail price of jorda per 10 grams is Rs 48 while the same amount of gul has been proposed to be priced at Rs 25. Those who have a habit of consuming paan jorda will increase their expenses. At the same time, there is a proposal to raise VAT from 7.5 to 15 percent at the local production stage of cigarette-bidi paper.

Mobile phone SIM card

The tax on the sale of SIM cards by mobile operators may be increased from Tk 200 to Tk 300. As a result, buyers can purchase SIM cards at an increased price.

Mobile calls will cost extra

To increase the scope of revenue collection, the consumer will have to pay more for talking on mobile. Currently, a consumer can talk about 73 taka if he recharges his mobile by 100 taka. The mobile operators deduct the remaining 27 taka as VAT and supplementary duties. If the 5 percent supplementary duty on mobile services is increased in the proposed budget, the consumer will be able to talk about 69.35 rupees.

ice cream

It has been proposed to increase the supplementary duty on ice cream. Supplementary duty is being increased from 5 to 10 percent. As a result, the price of ice cream will increase.

Electric meter

There is a difference in total coverage between imported normal kilowatt meters and pre-paid kilowatt hour meters which is reasonable to equalize. In view of that, it has been proposed to increase the import duty on pre-paid kilowatt hour meters and other electric meters from 15 percent to 25 percent. Import duty on pre-paid kilowatt meter parts and other electric meter parts is recommended to be increased from 10 percent to 15 percent.

the car

Currently MPs can import cars at duty-free facilities. In order to reduce disparity in the budget and cancel this facility in the proposed budget, the parliamentarians are going to come up with a proposal to impose 25 percent supplementary duty and 15 percent VAT to import cars. On the other hand, some specific conditions are being added in the proposed budget to exempt hybrid and non-hybrid type cars to prevent tax evasion on luxury cars. As a result, prices of luxury cars are likely to increase.

Soft drinks and energy drinks

VAT on soft drinks, carbonated beverages, energy drinks, amsattva may be increased from 5 percent to 10 percent. Apart from this, the minimum tax on carbonated beverages may be increased by another 2 percent to 5 percent. As a result, these products have to be bought at a higher price.

cashew nuts

As part of safeguarding cashew nut cultivation in the country, the duty on import of shelled cashew nuts is being increased from 5 percent to 10 percent. This may increase the price of cashew nuts.

AC

Many people are buying air conditioner or AC to get relief in summer. Considering AC as a luxury product in the next budget, VAT on compressors and all types of materials used in AC production in the country is being increased from 5 to 7.5 percent. So the price of AC may increase.

The cost of producing refrigerators will increase

The government has been exempting the country's electronics sector from VAT for several years. There is VAT exemption on refrigerator production till June 30. It is said that it will not be increased. As a result, the VAT rate may be increased from 5 percent to 7 percent in the new financial year.

Water filter

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 is being increased from 10 percent to 15 percent. Therefore, the price of household water filters may increase.

LED bulb

Many people use LED bulbs to save electricity bills. The price of LED bulbs may increase in the near future. Because the duty is being increased by 10 percent on the import of materials for the production of LED bulbs and energy saving bulbs.

Conversion cost to CNG-LPG

NBR has focused on increasing revenue collection due to increase in private CNG-LPG conversion due to rise in fuel prices. The duty on import of kits, cylinders and other machinery and parts used for vehicle CNG-LPG conversion is being increased from 3 percent to 5 percent. Due to this the car conversion cost may increase.

generator

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. Therefore, the price of generator may increase in the market of the country.

Imported mackerel fish

The addition of 15 percent VAT and 5 percent advance income tax on imported mackerel fish may increase the price of the product.

Pre-fabricated building construction cost

5 percent duty on components used in making pre-fabricated buildings is being increased to 10 percent in the next budget. As a result, the cost of building pre-fabricated buildings will increase.

brick

The proposed budget has proposed to increase the specific tax on bricks used in construction from 5 to 10 percent. As a result, the price of bricks will increase.

Security services

In big cities including the capital Dhaka, security services are almost essential in various places including homes, offices, business establishments. Such security services are subject to 10 percent Value Added Tax (VAT) or VAT. It is planned to increase it to 15 percent in the proposed budget.

Lease of Hatbazar

In order to increase non-tax revenue, the budget will slightly increase the rental price of Hatbazar at the district, upazila, and even union levels. Along with that, the land registration fee will also increase.

The cost of importing hospital equipment will increase

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 next budget, import of more than 200 medical devices and equipment may be increased to 10 percent, which may further increase the medical expenses of critically ill patients. 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 economic zones have to pay other duties (VAT, supplementary duties, regulatory duties) in addition to duties.

The size of the proposed budget for the financial year 2024-25 has been estimated at 7 lakh 97 thousand crores. This time the budget deficit is decreasing. Compared to the proposed budget of the current fiscal year, the deficit in the next fiscal year's budget is estimated to be Tk 5,785 crore. Without grants, the budget deficit has been estimated at two lakh 56 thousand crores. However, the overall deficit including grants will stand at Tk 2 lakh 51 thousand 600 crore. In other words, the target of receiving a grant of Tk 4,400 crore has been set for the next financial year.

To meet the deficit, the target of foreign debt has been fixed at 1 lakh 27 thousand 200 crores. 36 thousand 500 crores of foreign debt will be repaid. In this, the net foreign debt will stand at 90 thousand 700 crores. Apart from this, a loan of 1 lakh 60 thousand crore taka will be taken from the domestic sector. Out of this, one lakh 37 thousand 500 crores will be taken from the banking system; Of which Tk 72 thousand 682 crore is long term debt and Tk 64 thousand 818 crore is short term. 23 thousand 400 crores of non-bank loans will be taken. The target for sale of savings bonds is Tk 15,400 crore.

In the budget of the financial year 2024-25, the interest payment cost of the loan has been estimated at one lakh 13 thousand 500 crores. Out of this, interest on domestic debt is 93 thousand crores. And foreign loan interest is 20 thousand 500 crores.

In the budget, the revenue target has been fixed at five lakh 41 thousand crore rupees. Out of this, the target of National Board of Revenue (NBR) is 4 lakh 80 thousand crores. 15 thousand crores of non-NBR tax has been assessed. The target of non-operational receipts has been fixed at 46 thousand crores.

The 18th Finance Minister of the country, Abul Hasan Mahmud Ali, has presented the budget for the first time. This is the 53rd budget of the country.