Products and services that may see price hikes and reductions

Finance Minister Amir Khasru Mahmud Chowdhury began presenting the proposed budget for the 2026-27 fiscal year in the National Parliament at 3pm on Thursday, June 11. The budget proposes tax reductions on various products and services, as well as tax increases on some items. Overall analysis shows that the number of products with tax cuts is higher.

Prices may increase
The budget proposes setting the minimum retail price of cigarettes at Tk 62 for 10 sticks in the low tier, Tk 92 in the medium tier, Tk 160 in the high tier and Tk 210 in the premium tier. A 350 per cent supplementary duty has been proposed on nicotine granules and nicotine pouches.

For environmentally harmful diesel, petrol or octane-driven cars of 1,200-1,600cc, the tax rate has been proposed to be increased from 132.36 per cent to approximately 156 per cent. To encourage domestic cultivation, import duties on raw and processed cashew nuts have been increased from 1 per cent and 5 per cent respectively to 25 per cent. A 20 per cent supplementary duty has been imposed on imported pangas fish fillets to protect the domestic fish processing industry.

Additionally, the assessment value for imports of foreign gas cylinders, honey, betel nuts, coffee-sugar confectionaries and various other food items has been increased. VAT on rod-making materials has been raised. Prices of foreign tiles, sanitaryware, foam, microwave ovens, bicycles, toys, and lip liners and gels may also increase due to higher taxes.

Prices may decrease
The finance minister has proposed reducing the source tax rate on 60 essential commodities, including paddy, rice, wheat, potatoes, onions, garlic, edible oil and sugar, from a maximum of 5 per cent to 0.5 per cent.

Significant concessions have been offered for electric vehicles (EVs). For EVs priced up to $25,000, the tax rate has been reduced from 93 per cent to 64 per cent, and for those up to $50,000, it has been set at 80 per cent. Major concessions have also been given for EV charging station equipment.

All import duties, regulatory duties, supplementary duties and VAT on importing laptops, desktop computers, servers, printers and monitors have been withdrawn. The withdrawal of VAT and advance income tax on dialysis filters will reduce the cost per kidney dialysis session by approximately Tk 800.

The source tax rate on gold jewellery has been reduced from 5 per cent to 0.5 per cent, and VAT has been set at Tk 2,500 per bhari. Import duties on baby food raw materials have been reduced from 15 per cent to 10 per cent. The 5 per cent regulatory duty on cumin, cinnamon and various other spices has been withdrawn, as has the same duty on dates.

Various concessions have been given on pharmaceutical raw materials, and preferential benefits have been provided for nine new raw materials for cancer drugs. The regulatory duty on musical instruments such as guitars and pianos has been reduced, and import duties on cinematographic cameras have been cut from 15 per cent to 5 per cent. The prices of imported meat, animal feed, solar equipment, lipstick, face wash and various other cosmetics may also decrease.