Bangladesh: In the proposed national budget for FY 2025–26, the interim government has announced a series of tax adjustments, VAT exemptions, and duty revisions that are expected to affect the prices of several everyday items and services.
✅ Items Likely to Get Cheaper
Finance Adviser Dr. Salehuddin Ahmed, while presenting the Tk 7.9 trillion budget, outlined several VAT exemptions that could ease the financial burden on consumers, especially for essential and health-related goods:
- Sanitary napkins – VAT exemption at the business level
- Packaged liquid milk – VAT exempted
- Ballpoint pens – VAT exemption applied
- Handmade clay utensils and natural-material items – VAT removed at the production level
- Textile-grade date chips – VAT exemption granted
- Computer monitors up to 30 inches – VAT exemption extended (previous limit was 22 inches)
- Lease rent on passenger aircraft – VAT waived
- All types of ice cream – Supplementary duty halved from 10% to 5%
- Hospital bed production materials and spare parts – Full VAT exemption until 2030
- Locally manufactured motor vehicles, hybrid and electric vehicles – VAT exemption to continue until June 2030
- ICU and general ambulances (hybrid/electric) – Conditionally exempted from VAT
- Lithium and graphene batteries – Full VAT exemption until June 2027; partial exemption up to 2030
- Import of LNG (Liquefied Natural Gas) – VAT exemption, potentially lowering energy costs
- Components for refrigerators, air conditioners, and compressors – Supplementary duty exemption extended to 2028
❌ Items Likely to Get Costlier
Despite the cut in overall budget size, the government aims to boost revenue through increased VAT, duties, and surcharges, which may raise the cost of many imported and locally produced goods:
- Refrigerators and air conditioners – VAT may rise from 7.5% to 15%
- Locally manufactured mobile phones – VAT hike of 2%–2.5% proposed on production
- Motorcycles – Customs duties and VAT on parts and imports expected to increase
- Imported cosmetics and beauty products (lipstick, eyeliner, face wash) – Customs value and import taxes raised
- Imported toys and chocolates – Customs valuation increased; prices likely to rise
- Disposable plastic items (cups, plates, bowls) – VAT may increase to 15%
- Razor blades, screws, bolts, barbed wire, electric line fittings, and door locks – Prices may rise due to tax adjustments
- Construction materials (e.g., rods) – May become more expensive
- Self-copy, duplex, and coated paper – Likely price hikes
- Batteries for electric rickshaws – VAT and duty increases expected
- Imported helicopters, marble, and granite – Higher taxes imposed
- Nutritional supplements for pregnant and lactating mothers – Import costs to rise
- Beverage items – Higher taxes may raise prices
🔧 Service Sector Impact
- Convention halls and conference centers – Source tax may be doubled
- Commercial vehicles – Advance tax to increase
- Private vehicle owners – Surcharge expected to go up
- Mobile tower-sharing companies and telecom services – 20% source tax may raise service costs
📉 Budget Strategy
This year marks the first time since independence that the national budget has shrunk, with a Tk 70 billion reduction from the previous fiscal year. The contraction aligns with a tighter monetary policy designed to reduce inflation, now targeted to fall below 8% by June.
