Bangladesh budget: How it impacts your purse

The prices of many goods and products are likely to change under the budget tailored for 2021-22 fiscal.

Senior Correspondentbdnews24.com
Published : 3 June 2021, 04:08 PM
Updated : 3 June 2021, 04:08 PM

Finance Minister AHM Mustafa Kamal has proposed a reduction of tax and customs duties on different health sector goods.

The prices of various healthcare products, technology and household goods, agricultural machinery, microbuses and fuel-efficient motorcycles, also known as mopeds, could fall.

On the other hand, there could be a rise in the prices of imported feature phones, industrial salt, certain types of food and several other products.

PRICE HIKES

The prices of several goods are expected to rise as a result of increased taxes or customs duties in the new budget.

Higher duties have been imposed on imports of meat, iron cookware, carrots and mushrooms. A higher tariff on industrial salt, sodium sulphate or disodium sulphate, has also been proposed. The import of edible salt is banned in Bangladesh.

There has been a recent trend of importing edible salt by inaccurately declaring it as industrial salt, said Minister Kamal.

“In addition, there are allegations of marketing edible salt mixed with industrial salt, which is harmful to public health.  As a result, marginal salt farmers and salt mills of the country are being affected.”

He also sought to increase the tariff on the import of feature phones to protect the domestic industry.

Cigarettes will also get costlier, but the prices of bidi, Jarda and Gul will remain unchanged.

PRICE CUTS

The price of several goods is due to fall as the tax rate or customs duties on them is cut.

VAT exemptions were proposed for several goods and sectors, including household appliances, puffed rice, trading of fresh fruit and the locally-manufactured mobile phones and computer parts.

The minister also suggested VAT and supplementary duty exemptions be made for the local manufacturing stage on the production of sanitary napkins, with a two-year extension of the VAT exemption on the import of certain raw materials used to make napkins and diapers

Kamal proposed continuing the VAT exemption on importing, manufacturing and trading COVID-19 test kits, PPE and vaccines, the withdrawal of the 10 percent supplementary from locally manufactured ‘long pan’ for cheaper sanitation facilities in rural areas.

He also suggested VAT exemptions for autism-related services and continuing the existing VAT exemption on ‘meditation services’ to protect mental health.

A duty-free facility was proposed on the import of implantable ‘occluders’ used for the treatment of children born with heart defects.

Concessionary rates could also be provided for the import of raw materials for several sectors and the production of certain goods, Kamal said.

These include cable and internet cables, televisions, locally produced computers, laptops and ICT products, microbuses, hybrid cars and fuel-efficient motorcycles, also called mopeds.

Toufique Imrose Khalidi
Editor-in-Chief and Publisher