The government in the proposed national budget for the 2025–26 fiscal years has suggested increasing duties and reducing tax exemptions on several products, which may lead to price hikes.

Finance Adviser Dr Salehuddin Ahmed made the announcement during his budget speech on Monday (June 2), broadcasted on Bangladesh Television.

The changes include a partial reduction in VAT exemption on mobile phone manufacturing and assembly. Although the exemption period has been extended, the reduced benefit may cause mobile phone prices to increase.

VAT exemptions have also been partially reduced on the local production of household electronics such as washing machines, microwave ovens, blenders, juicers, irons, rice cookers, and pressure cookers.

The VAT on plastic household items, including tableware, has been doubled to 15 percent. However, eco-friendly alternatives will continue to receive VAT exemption.

The VAT exemption on locally produced LPG cylinders has been slightly reduced, though the duration has been extended. As a result, LPG cylinder prices may go up.

The customs value of imported chocolate has been increased—from $4 to $10 per unit—raising import costs.

The VAT on blade manufacturing has risen from 5 percent to 7.5 percent, which may raise the price of shaving blades.

In addition, the customs value on imported cosmetics such as lipsticks and facial products has been significantly raised, which may result in higher prices for these items.

MSK/