Finance Minister AMA Muhith has placed the annual budget proposal of around Tk250,506 crore taka for 2014-15 fiscal year on Thursday afternoon.
In the budget, Muhith proposed increase of value added taxes on a number of products and services.
The products and services which will see a price hike after the budget include air conditioned launch, bus and railway tickets, English medium school, motor garage, workshop, dockyard and photograph maker.
An increase of prices of land development and building construction sectors and jewellery services, restaurant service is expected under the the proposed VAT regime in the budget of fiscal 2014-15.
Tobacco products are expected to see an increase in price as imposition of 1% “Health Development Surcharge” on all imported and domestically produced tobacco products has been proposed in the budget on Thursday.
The present prices of 25-stick non-filter and 20-stick filter cigarettes are Tk5.354 and Tk6.052 respectively.
To discourage smoking, the government has proposed to fix the price of 25-stick non-filter cigarettes at Tk6.14 and 20-stick filter cigarettes at Tk6.94.
Alongside, it was proposed to raise the existing supplementary duty rate on jarda and gul products from 30% to 60%.
Apart from these, it was proposed raise net VAT on general restaurant service (not air conditioned) to 7.5% from existing 6%.
