Budget: Products that likely to see price hike

The proposed national budget for the fiscal year 2025–26 is scheduled to be announced on Monday, June 2, with nearly all preparations finalized. As is customary, certain product prices are expected to increase or decrease based on the budget’s measures. This year, in an effort to curb inflation and balance the industrial sector, the government is proposing reductions in duties on some products while increasing tariffs on others—many of which are everyday essentials for the general public.

Amid high inflation, any increase in tariffs could further drive up prices, leading to a higher cost of living.

Each year, to meet its revenue targets, the National Board of Revenue (NBR) typically raises VAT and duties on various essential and frequently used products, which results in price hikes in the market.

Refrigerators & Air Conditioners

To move away from a culture of exemptions, the VAT waiver on refrigerators and air conditioners is being withdrawn. This may raise the prices of locally manufactured fridge and AC units. In turn, imports of foreign electronics may increase.

Mobile Phones

VAT on mobile phone manufacturing and assembly is set to rise, with an increase of 2% to 2.5% depending on the production category. As a result, locally assembled mobile phones could become more expensive.

Blades

The price of blades used in salons for shaving may increase, as the VAT on blades made from stainless steel and carbon steel strips is being raised from 5% to 7%.

Tableware & Household Plastics

VAT on the production of plastic-made tableware, kitchenware, household items, hygienic and toilet products is being raised from 7.5% to 15%, likely driving up prices of these items used in everyday households.

Yarn

VAT on yarn produced by local textile mills is being raised. The specific duty on cotton and man-made fiber yarn is increasing from Tk 3 to Tk 5 per kilogram. This could lead to higher prices for locally made clothing such as gamchas, lungis, and other garments.

Rods (Construction Materials)

The specific duty on scrap metal—the primary raw material for producing rods and angle bars—is rising from Tk 1,000 to Tk 1,200. Duties are also increasing on billets, ingots, and chemicals like ferro manganese and ferro silica manganese used in the smelting process. These changes are expected to raise the cost of construction rods.

Helicopters

A 10% import duty may be imposed on helicopters in the upcoming fiscal year, making helicopter imports more expensive.

Cosmetics

The minimum customs valuation for imported beauty products used by women—such as lipstick, lip liner, eyeliner, face wash, and other makeup items—is set to increase. For example, the minimum value for lipstick imports may rise from $20 to $40 per kg. Similar increases will apply to other cosmetics, pushing up their retail prices post-budget.

Imported Chocolate

The budget proposes raising the minimum customs valuation for chocolate imports. Currently set at $4 per unit for various chocolate types, this may be raised to $10, making all imported chocolates more expensive.

Toys

To protect domestic industries, the budget proposes an increase in tariff value on foreign-made toys, which would make imported toys costlier.

Marble & Granite

Supplementary duty on imported marble and granite used for flooring is being raised from 20% to 45%, which will significantly increase the cost of these decorative stones.

Electric Motors

To regulate battery-powered rickshaws, the import duty on 750-watt DC motors used in these vehicles is rising from 1% to 15%.

Other Items

Prices may also rise for:

Barbed wire

All types of screws, nuts, and bolts

Electric line hardware and pole fittings

Self-copy paper and duplex/coated paper

Single-use plastic cups, bowls, and plates

Tobacco seeds

Motorcycle and bicycle parts

Food supplements for pregnant and lactating mothers

Beverage items

Door locks, and more

These proposed changes aim to increase government revenue but are likely to place added pressure on consumers already grappling with high living costs.