FY24 budget: products to pay more and less for

Prices of some products are set to rise while some others will see a decline with changes in taxes proposed in the budget for the fiscal year 2023-24

Prices of some products are set to rise while some others will see a decline with changes in taxes proposed in the Tk 7.61 trillion budget for the fiscal year 2023-24.

People will have to purchase goods and services at revised prices once the new year starts in July.

According to the proposals submitted by the finance minister, the prices of imported software, mobile handsets, plastic products, hygiene and toilet articles, pens, aluminium products, refrigerators and cigarettes among many other commodities are going up.

The cost of foreign trips may also rise due to the extended duty in the travel sector.

The prices of sweetmeats, handmade biscuits, anti-malarial and anti-tuberculosis drugs, agricultural products, sanitary napkins and diapers will decline.

PRODUCTS THAT MAY GET CHEAPER

· Optical fibre cable: more than 5 per cent VAT exemption at the production stage.

. Biscuits and cakes: a raise in the existing exemption limit for handmade biscuits to Tk 200 per kg from Tk 150 and for cakes (excluding party cake) to Tk 300 per kg from Tk 250.

· Sweetmeats: cut the existing 15 per cent tax rate to 7.5 per cent to realise the desired revenue from sweetmeat shop service.

. Coconut/copra waste: VAT exemption on coconut/copra waste at the manufacturing stage which is used as animal feed.

. Agricultural products: advance tax exemption on import of rice transplanters, dryers, all types of sprayers machines, potato planters, containers, and solar-power-operated water distillation plants to facilitate trade and reduce production costs.

. Aviation: advance tax exemption on import of aircraft engines, Turbo jets and aircraft parts imported by registered airlines.

. Sanitary napkins and diapers: an extension in the current period of VAT exemption and supplementary duty on import of certain raw materials used in the production of the products for the protection of women and children.

. Anti-malarial and anti-tuberculosis drugs: VAT exemption at the production stage.

PRODUCTS THAT MAY GET COSTLIER

. Ballpoint pen: 15 per cent VAT proposed at the manufacturing stage.

· Cigarette: 150 per cent SD has been proposed for liquid nicotine products, while a 212.20 per cent tax has been proposed during the import of e-cigarettes and other vaporising devices.

· Car: a climate surcharge based on their engines' cubic capacity or, cc, applicable for owning more than one car. The cost of owning more than one car will rise as a result.

· Land: an increase in source tax is proposed for land registration.

· Travel: a tax increase has been proposed for travelling abroad, while the tax rate has also been increased for domestic air travel.

· Software: 5 per cent VAT on software production and customisation services.

· LPG cylinder: a 7.5 per cent VAT on the steel required to build liquefied petroleum gas cylinders, up from the existing five per cent.

· Mobile phones: the VAT on local mobile phone manufacturers proposed up to 7.5% based on their capabilities. At the manufacturing stage, the VAT rate has been increased to 2 per cent from 0, while in different stages at the assembly rate, the VAT has been raised to 5 per cent from 3 per cent and to 7.5 per cent from 5 per cent.

· Plastic products: a 7.5 per cent VAT, up from the existing five per cent, on all types of plastic tableware, kitchenware, household articles, hygiene and toilet articles, including any similar products, except tiffin boxes and water bottles.

· Kitchenware: 7.5 per cent VAT instead of 5 per cent for aluminium dinnerware, similar products and kitchen machinery.

· Household products: a 7.5 per cent VAT instead of 5 per cent for different types of tissue papers, hand towels and clinical bed sheets.

· Imported soaps: the regulatory duty for imported soap has been proposed to be 20 per cent from the existing 3 per cent.

· Sunglasses: a 7.5 per cent VAT for plastic and metal framed sunglasses, up from the existing 5 per cent.

· Cement: specific rate of duty of Tk 700 has been proposed for imported cement clinkers up from the existing Tk 500. For commercial importers, the specific rate of duty on the product has been raised to Tk 950 from Tk 750.

· Elevators: a 15 per cent import duty has been proposed for elevators, up from the existing 5 per cent, while a 15 per cent import duty has been proposed for escalators up from the current 1 per cent.

· Cashew nuts: a 15 per cent VAT instead of 5 per cent on cashew nuts, including shelled ones.

. Basmati rice: a 15 per cent VAT on non-fortified Basmati rice.

· Fruits: A 20 per cent import duty on fruits, nuts and other edible parts of plants.

· bicycle: 15 per cent import duty has been proposed for bicycle parts, up from the current 10 per cent.

The prices of refrigerators and freezers, washing machines, microwave ovens, electric ovens, blenders, electric kettles, multi-cookers and pressure cookers will remain unchanged due to the extension of the existing VAT exemption facility for the production of the products.

The existing VAT exemption facility will remain in force for the production of printers, toner cartridges/inkjet cartridges, printer parts, computers, laptops, AIOs, desktops, notebooks, notepads, tabs, servers, keyboards, mouses, barcode or QR scanners, interactive display, RAM, PCBA or motherboard, mobile phone charger and battery, power bank, router, network switch, modem, network device or hub, speakers, sound system, earphones or headphones, SSD or portable SSD, hard disk drive, pen drive, micro SD card, flash memory card, CCTV, projector, printed circuit board, e-writing pad, USB cable or data cables, digital watches, various types of Loaded PCBs.