Prices of bread, biscuits to increase, cut in fire fighting equipment

The hints of the price rise and fall came on Thursday after Finance Minister Abul Maal Abdul Muhith proposed revision of tax, duty and VAT on a number of products while presenting the Tk 3.14 trillion national budget for the 2016-17 fiscal in Parliament.

He has proposed a raise in duty only in case of export on some products and withdrawing VAT exemption from several others.

The minister is banking on VAT as a major source of revenue collection in the next financial year.

Consumers will have to spend more if VAT is added to the current prices of handmade loaf, bun, similar kinds of bread, cake, and biscuit valuing up to Tk 100 per kg.

Also, prices of shoes and slippers made of rubber and plastic priced up to Tk 120 per pair will also go up as Muhith has proposed to withdraw their immunity from VAT.

Due to the same reason, the prices of locally manufactured hard board, electric generator, and motorcycle, fabrics woven by power loom will also rise.

The VAT will also be imposed on travel agents and meditation services and classified advertisement, except condolence messages, increasing their prices.

In order to give incentive to the textile sub-sector, the minister also proposed to withdraw VAT from dyeing, printing, finishing and calendaring of grey fabrics.

His proposal to increase import duties on various diagnostic equipment is also signalling a rise in medical expenses.

These goods may soon get cheaper as proposed duty cuts may reduce their import costs:

>> Ingredients for manufacturing dairy products, coffee mate

>> Talcum powder, petroleum jelly

>> Mobile-phone SIM cards, scratch cards and credit cards

>> Grease, Dioctyl orthophthalates (DOP)

>> Fibre glass used by electric fan makers

>> Self-adhesive plates, sheet, film, foil, tape, strip (with width not exceeding 20 cm)

>> Laboratory refrigerators for pharmaceutical industries

>> Mortuary imported by hospitals

>> LED lamp parts

>> Re-seal tape for sanitary napkins