Bangladesh Finance Minister Abul Hassan Mahmood Ali announced the BDT 7,96,900 crore (approximately $7.97 billion) national budget for the fiscal year 2024/25 in the parliament today, 6 June, 2024. The new budget could potentially have an impact on several consumer products and services.

Potential price hikes

  • Phone and internet services: Increased supplementary duty may raise SMS, call rates, and internet costs.
  • Oils: Prices of furnace oil, lubricants, mineral lubricants, and base oil may increase.
  • Cigarettes: Prices of cigarettes could increase as a 60% to 65.5% supplementary duty hike on various categories of cigarettes proposed.
  • CNG conversion kits and cylinders: Import duty may increase from 3% to 5%.
  • Power plants: Import duty on equipment and materials for Rampal power plant and other stations may increase from 0% to 5%.
  • Establishments at economic zones: 1% customs duty proposed on import of capital machinery and construction materials. The subsidised facility or duty-free facility on the import of capital machinery and construction materials in economic zones will be potentially withdrawn.
  • Air conditioners and refrigerators: Increased import duties on compressors, steel sheets, and raw materials may raise prices.
  • Water filters: Import duty may increase from 10% to 15%.
  • LED bulbs: 10% import duty on manufacturing materials may raise prices.
  • Cashew nuts: Import duty may increase from 5% to 10% on shelled cashew nuts.
  • Other products: Prices may rise for ice cream, carbonated beverages, amusement parks, theme parks, and tourism services due to proposed VAT.

Potential price decrease

  • Essential commodities: Proposed reduction in import duty on 30 essential items, including rice, edible oil, sugar, chickpeas, milk, and wheat.
  •  Aircraft engines and propellers: Proposed VAT withdrawal on imports.
  • Powdered milk: Withdrawal of 20% supplementary duty on imported packaged powdered milk.
  • Chocolates: Reduction in supplementary duty from 45% to 20%.
  • Laptops: Import duty reduction from 31% to 20.50%; VAT has been withdrawn to curb import of used laptops.
  • Motorcycles: Reduced import duty on engine parts for motorcycles under 250cc; expected price increase for motorcycles above 250cc.
  • Dengue test kits: Proposed exemptions on import duty, VAT, and advance tax.
  • Kidney treatment: Reduced import duty from 10% to 1% on dialysis filters and circuit products.
  • Cancer treatment: Proposed import duty waiver on cancer treating equipment.
  • Carpets: Import duty on polypropylene yarn reduced from 10%  to 5%.
  • Electric motors: Proposed subsidy to increase import of parts for electric motor production.
  • Methanol: Import duty reduced from 10% to 5% for bulk imports.