Price Reductions Proposed for Several Products in Bangladesh’s 2025-26 Budget

Economics, June 2, 2025 : Dr. Salehuddin Ahmed, the Finance Adviser of Bangladesh’s interim government, presented the proposed budget for the 2025-26 fiscal year, valued at BDT 789,999 crore, on June 2, 2025.

This marks the first budget of the interim government and the 54th in the country’s history. The budget speech, delivered at 3:00 PM on Bangladesh Television, included proposals to reduce duties and taxes on various products, potentially lowering their prices.

The budget’s duty and tax proposals take effect immediately, which may lead to reduced prices for certain goods, although price reductions typically take longer to reflect in the market compared to price hikes due to increased duties.

Products Likely to See Price Reductions:

Sugar: The import duty on refined sugar has been reduced by BDT 500 per ton, bringing it to BDT 4,000 per ton, creating opportunities for lower sugar prices.
Sanitary Napkins: VAT exemptions have been granted at the local business level for sanitary napkins, potentially reducing costs.
Liquid Milk: Packaged liquid milk has been exempted from VAT at the local level, which may lower retail prices.
Pens: Ballpoint pens and similar items have been granted VAT exemptions at the local level, potentially making them more affordable.
Imported Fish and Meat: Supplementary duties on imported fish like salmon and tuna, as well as meat, have been reduced, which could lead to lower prices.
Ice Cream: After years of increases, the supplementary duty on ice cream has been reduced from 10% to 5%, potentially lowering its market price.
Computer Monitors: VAT exemptions have been extended to computer monitors up to 30 inches (previously 22 inches) at the production and business levels, including interactive monitors, which may result in slightly lower prices for larger monitors.
Butter: A 3% regulatory duty on imported butter has been withdrawn, potentially reducing its price.
Imported Plastic Household Items: Supplementary duties on imported plastic household goods have been reduced by 5%, which may lower costs.
Imported Clothing: Supplementary duties on imported clothing for men, women, and children have been slightly reduced, potentially lowering prices.
Imported Footwear: Supplementary duties on imported shoes and sandals have been reduced, which could make them more affordable.

Additionally, price reductions are expected for cancer drugs, insulin, locally manufactured e-bikes, land registration fees, LNG, tires, earthenware, paper plates, aircraft leasing, and lithium-ion batteries.

The proposed budget aims to ease the financial burden on consumers by reducing duties and taxes on essential and commonly used goods, with the potential to stabilize or lower market prices.

AI/MR