Upcoming budget: Prices of products that may increase

The upcoming fiscal year is going to have a major impact on the pockets of the common man and the market dynamics. In the proposed budget for the 2026-27 fiscal year, major initiatives are being taken to increase taxes, duties and VAT in various goods and services sectors to increase the country's revenue revenue. As a result, there is a possibility that the prices of several daily consumer goods, import-dependent goods and luxury goods will increase from the next fiscal year.

The first full budget of the government led by Prime Minister Tarique Rahman will be presented in the National Parliament on Thursday (June 11) at 3 pm. Finance and Planning Minister Amir Khasru Mahmud Chowdhury will present the country's new budget in the parliament.

Finance Ministry sources said that the potential size and deficit of this year's budget is going to be a record Tk9 lakh 38 thousand crore. Against this huge expenditure, the total revenue revenue target has been set at Tk6 lakh 95 thousand crore. As a result, the overall budget deficit could be Tk2 lakh 43 thousand crore. The new budget plans to target GDP growth at 6.5 percent and inflation at 7.5 percent.

The details of the products whose market prices are going to increase due to the increase in tax rates to meet the revenue collection target are given below:

1. Cigarettes and tobacco products: The proposed budget has a specific plan to increase the price limit of all levels of cigarettes. At the same time, the supplementary duty on raw materials for making nicotine pouches and cigarette filters may be increased by 300 percent and on nicotine by 350 percent. As a result, the prices of cigarettes and nicotine products will increase significantly. According to the possible new price limits: Low-level 10-stick packet: Tk62, medium-level packet: Tk92, high-level packet: Tk160, ultra-high-level packet: Tk210.

2. Alcohol and alcoholic beverages: It has been proposed to impose a new VAT of Tk500 per liter on alcohol produced in the country. As a result, the retail price of such locally produced products will increase.

3. Imported cashews and foreign fish: To protect the domestic processing industry and discourage imports, there is a proposal to increase the import duty on cashews from 5 percent to 25 percent. In addition, a new 15 percent VAT may be imposed on imported foreign frozen fish that are on the high-end food list.

4. Mild steel or MS rod: Bad news is coming for the housing and infrastructure sector this time. The price of mild steel i.e. MS rod may be increased by about 10 percent at the production stage, tax and VAT. This will have a direct impact on the country's housing and overall construction sector, as a result of which the construction cost of flats and houses will increase significantly in one fell swoop.

5. Foreign cosmetics and luxury goods: Preparations are underway to impose 20 percent VAT at the import stage on foreign cosmetics, luxury goods, high-priced packaged food products and 10 new categories of products. As a result, buyers will have to pay extra money out of their pockets to buy products from amateur and foreign brands.