In the Bangladesh National Budget for FY25, the government has proposed a 7.5% value-added tax (VAT) on air conditioners, marking a significant increase from the current 0%.
This move comes as air conditioner sales have been booming in recent years, with an estimated 530,000 units sold in 2023, driven by persistent heat waves.
However, the new VAT could slow down this momentum, potentially dampening sales as consumers face higher costs.
Finance Minister Abul Hassan Mahmood Ali presented the proposed budget for the 2024-2025 fiscal year amounting to Tk797,000 crore (Tk7.97 trillion) in parliament on Thursday.
This was his first budget unveiling and the first budget after the reelection of the Awami League government in January.
