Proposed 2025-26 Budget: Products Likely to See Price Hikes

02 June, 2025 : The national budget for the 2025-26 fiscal year are Declared in National Parliament today, Sunday, June 2. Finance Advisor Salehuddin Ahmed was announced the budget at 3:00 PM, which was broadcast live by Bangladesh Radio and Television.

The proposed budget, amounting to BDT 7.90 lakh crore, sets a revenue collection target of BDT 4.99 lakh crore. Alongside increasing revenue, the budget is expected to prioritize consumer interests. However, changes in duties and VAT may lead to price increases for some products, while others may see a reduction.

Products Likely to See Price Increases:

Rod and Steel: The budget proposes increasing VAT on rod imports to 20-23% and on production to 20%. This could raise rod prices by approximately BDT 1,400 per ton. Currently, scrap imports incur a fixed duty of BDT 1,500 per ton, and billet and rod production face a fixed VAT of BDT 2,200 per ton.
Air Conditioners and Refrigerators: VAT on ACs and fridges is planned to rise from 7.5% to 15%, potentially posing challenges for local manufacturers.
Motorcycle and Bicycle Parts: There is a possibility of increasing duties and VAT on motorcycle engine parts, which could lead to higher prices in this sector.
Cigarettes: The supplementary duty on cigarette paper is proposed to increase from 60% to 100%, potentially causing another round of price hikes for cigarettes.
Locally Produced Mobile Phones: VAT on mobile phone production and assembly is set to rise by 2-2.5%, likely increasing the prices of locally made phones.
Battery-Powered Rickshaws: Customs duty on 1200-watt DC motors for battery-powered rickshaws is proposed to increase from 1% to 15%.
Cosmetics: The minimum valuation price for importing cosmetics, such as lipstick, may rise from $20 to $40 per kg, affecting overall cosmetics prices.
Single-Use Plastic Products: VAT on single-use plastic products, like tea/coffee cups and plates, is planned to double to 15%.
Blades and Tableware: VAT on shaving blades and plastic tableware, kitchenware, and household items will increase from 7.5% to 15%.
Local Yarn: Specific tax on cotton and man-made fiber yarn production is proposed to rise from BDT 3 to BDT 5 per kg, potentially increasing prices of garments like towels and lungis.
Helicopters: A new 10% import duty is proposed for helicopters, which were previously duty-free.
Imported Chocolates and Toys: The minimum tariff value for chocolates is set to increase from $4 to $10, and foreign toys will face higher tariffs, potentially raising their prices.
Marble and Granite: Supplementary duty on imported marble and granite is proposed to rise from 20% to 45%, likely increasing their costs.