• Monday, Aug 15, 2022
  • Last Update : 04:24 pm

Budget FY21: Prices up, prices down

  • Published at 05:25 pm June 11th, 2020
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Representational photo BIgstock

Finance Minister AHM Mustafa Kamal has proposed changes to duties on different products, which will result in increase or decrease in their prices

UP

Onion: 5% customs duty each on import of bulk onions and wrapped or canned onion up to 2.5kg. Currently, there is no duty on the import of onion.

Furniture: Furniture to see 2.5% VAT hike at showrooms.

Car registration, renewal and other services: Supplementary duty (SD) proposed to be hiked to 15% from the existing 10% on all BRTA services.

Mobile services: SD hiked to 15% from existing 10% on services provided through mobile phone SIM/RIM cards including internet charge.

Chartered aeroplanes and helicopters: SD hiked to 30% from existing 25%.

AC launch travel: VAT to be doubled to 10% from 5%.

Imported cell phones: Existing duty rate proposed to be hiked.

Cosmetics: Locally manufactured cosmetics to have 10% SD from the existing 5%.

Ceramic sink and basin: 10% SD imposed at the manufacturing stage.

Industrial salt: Existing duty rate on industrial salt proposed to be hiked.

Imported honey: Natural honey in bulk to have 10% hike in customs duty and a fresh 15% VAT.

Lightning arrester: Customs duty doubled to 10% from existing 5%.

Local tobacco products: All local tobacco products including cigarette, biri, gul, jorda will see a duty hike.

Cigarette: Increase in the price of three out of the four levels of cigarettes.

Processed chicken meat: Increase in duty for imported processed chicken meat.

Pin, screws: Price of small parts including pin screws may increase as proposal made to increase import duty to encourage local production.

Routers and PCB: 5% VAT likely to be imposed on locally produced printer circuit boards (PCB), unloaded PCB and routers.

Furnace oil: Withdrawal of concession on furnace oil imports was proposed to discourage oil-based power plants.

Others: Television, online shopping, aluminium products, imported poultry goods, painting charge, cement, printer ink, raw material for glue, and lighting items also may see a hike in duty.

Down

Locally produced mustard oil: Total VAT exemption proposed.

Up to 60 AMP solar battery: VAT exemption proposed on production for Infrastructure Development Company Limited (IDCOL) partner organizations.

Potato flakes made of locally produced potatoes: VAT rate proposed at 5% from existing 15%.

Maize starch: VAT rate proposed at 5% from existing 15% on local manufacturing.

Covid-19 kits: VAT exemption proposed on import, manufacturing and trading of Covid-19 related kits.

Personal Protective Equipment (PPE) and Surgical Mask (including face mask): VAT exemption proposed on local companies’ manufacturing and trading stages.

Covid-19 medicine: VAT exemption proposed on import, manufacturing and trading.

Sanitary napkin and diaper: Customs duty to come down on import of raw materials.

Gold: Import of gold bar exempted from 15% VAT.

Yarn: Polyester, rayon and all other synthetic yarns will see reduction in price as the proposed VAT on it is set at Tk6 per kg instead of 5% overall.

SME goods: Concessions proposed on import of several raw materials used in the production of SME products.

Poultry, fisheries and dairy goods: Soybean oil cake and soy-protein concentrates for the fisheries, poultry and dairy goods likely to see decreased import duty.

Agricultural Machinery: VAT to be exempted on power reaper, power tiller operated seeder, combined harvester, rotary tiller. 

Local items: Locally made fridge, air-conditioner, cell phone, motorbike, refrigerator, plastic goods, LP gas cylinder, automobile products etc. will also see a decrease in duty.

Others: Detergent, ICU equipment, sanitizer, disinfectant spraying machine, hand operated agriculture equipment, mild steel sheet, raw materials of production based industry, artificial leather and cloths to produce shoes (shoe industry), X-ray plate, compressor raw material, petroleum goods, textile fabrics, garlic, sugar, and lubricants will likely see reduced duty.