Gold, LPG gas cylinders, mobile handsets, LED bulbs and tube lights will witness a hike as Finance Minister AMA Muhith yesterday proposed imposing more duty on them while placing the budget for the next fiscal year.
The finance minister had proposed raising duty on gold import from Tk150 to Tk3,000 per 11.664gm, a 20 times hike.
Popular mobile handsets would be costlier as the government had imposed a 15% VAT on its import. Earlier, local assemblers had to pay a 15% VAT at assembling stage and a 10% VAT on import of handsets.
Residents of the capital who often face gas crisis will now have to spend more money as VAT on LPG gas cylinders having the capacity below 5,000 litres was increased from the existing 5% to 25%.
The minister also proposed increasing the price of LED energy-saving bulbs from the existing 10% to 25 %.
About cigarette and bidi, the finance minister said the government is committed to reduce the use of tobacco and discourage smoking.
Accordingly, the budget proposed increasing the prices of tobacco products. Even though premium grade cigarette saw no hike, taxes on lower grades increased by 2% and 4%.
The price of bidi will increase by about 4%.
Muhith said, “We determine tax incidence on the basis of these price slabs. I propose that the tax incidence of premium and high slabs will be the same or 76% and for medium slab it would be 75% and finally, for the lowest slab it is 58%. 1% health development surcharge will be imposed on these items.”
He said considering the importance of SIM cards for the expansion of telephone industry, its supplementary duty would be decreased to 15% from the existing 30%.
Tax on motor cars and other motor vehicles, including station wagons of a cylinder with the capacity of 1701cc to 2000cc would be reduced from existing 150% to 100% and 2001cc to 2750cc rate will be reduced from 250% to 200%.
Beverages will be costlier as the government has increased duty on beverage concentrate from the existing 10% to 25%.
Prices to go down
Mobile SIM cards, motor vehicles and hybrid cars, fruits and fishes and imitation jewellery will be cheaper as the government has reduced duty on them.
Meanwhile, milk food is likely to be cheaper as the customs duty on stabilisers for milk imported by VAT-registered milk foodstuff manufacturing industries will be reduced from 25% to 10%.
People can now get fresh juice in cheaper prices as the minister proposed reducing tax on fruit and vegetable juice from the existing 30% to 20%.
People suffering from cancer will now get relief as the prices of anti-cancer drugs will be lowered as customs duty on 14 items used as raw materials were proposed to be fully exempted.
To protect local diaper industry, the government has reduced duty on its raw materials from 25% to 10%.
VAT on edible oils will be reduced from existing 15% to 10% at import stage.