The tax reductions announced in the first budget of the BNP government have yet to significantly lower retail prices of essential commodities, with traders saying the benefits will only become visible once products imported under the revised duty structure reach the market.
According to market sources, the budget scrapped the 5 percent regulatory duty on imported spices and dates and reduced the applicable tax on many essential commodities from 5 percent to 0.5 percent. However, the tax cuts have yet to be reflected in retail prices across the capital, with consumers seeing little immediate relief.
Retailers offered mixed views on current market trends. While some said prices of a few spices have declined, others reported that most remain unchanged or have even increased. Prices of dates, meanwhile, have shown little to no change.
Traders said the budget is expected to reduce prices of several imported goods over time, but the full impact will not be felt until products imported under the new tax regime reach wholesale markets and eventually retailers. Until then, higher prices are likely to persist.
Md Rafiqul Islam, owner of Bismillah Masala Ghar in Old Dhaka, said the budget's impact has varied across products.
"Prices of cardamom and cumin have eased slightly, providing consumers with some relief. However, that alone is not enough. The prices of most other spices, including cinnamon, cloves, mace, poppy seeds, cashew nuts and almonds, have instead increased," he said.
"Many customers assume that a decline in the prices of cardamom and cumin means all spices have become cheaper. But they are disappointed when they learn the prices of other spices remain high," he said. "We are still purchasing goods at high prices from the wholesale market, forcing us to maintain higher retail prices. As a result, consumers have yet to experience any meaningful relief, and sales have declined compared with earlier levels. Unless wholesale prices fall, the budget's impact will not be reflected in the retail market."
Md Anwar Hossain, proprietor of Mahi General Store, said prices of several spices had begun to ease gradually after surging in recent months.
"However, the market has yet to return to normal, and supplies remain lower than usual. Consumer demand is expected to recover once supply stabilises and market conditions improve. While the budget has raised hopes of a positive shift, it will take some time before consumers see tangible relief," he said.
Date trader Mohammad Mia said the budget had so far had little impact on the date market.
"Prices may decline after fresh consignments enter the market. Until then, we have no option but to sell dates at the current rates. Once new stocks arrive, prices may be adjusted depending on market conditions," he said.
Md Al Amin, a date trader at Badamtali, said the government's duty and tax reductions had yet to influence date prices because the import season had not started.
"Fresh consignments of dates generally begin arriving between late October and November. The dates currently available in the market were imported under the previous duty and tax regime," he said.
He said the government's tax concessions could help reduce prices once new imports arrive.
"However, with traders still selling existing inventories, there is little room for prices to fall at this stage. In the past, sudden tax cuts caused significant losses for importers and traders. Therefore, no major change in the market is expected until fresh consignments reach the market," he added.
Azgar Ali, a trader dealing in onions, garlic, ginger and other essential commodities, said onions were currently retailing at Tk40 per kilogram.
"Like onions, the prices of garlic, ginger and other essential commodities are primarily driven by supply and imports. Prices decline when supplies are adequate and rise when they tighten. A bumper onion harvest this year has pushed prices down significantly compared with last year. However, prices of garlic, ginger and other import-dependent items continue to fluctuate in line with supply and import conditions. Ultimately, market supply has a far greater influence on prices than the budget itself," he said.
Meanwhile, addressing a post-budget parliamentary conference at the LD Hall of the National Parliament on Thursday, Chief Whip Md Nurul Islam Moni said the government expected the prices of goods on which taxes had been reduced to come down accordingly.
"The government is committed to ensuring that tax reductions are reflected in lower prices," he said. "No taxes have been increased on 63 essential commodities. Instead, the 5 percent tax on some of these items has been reduced to 0.5 percent. Therefore, the prices of those products should decline."
He said the budget touched almost every sector related to people's lives and livelihoods.
"That is why the Prime Minister has described it as a 'people-friendly budget'. In his words, the budget for the 2026-27 fiscal year is, in the truest sense, a people-friendly budget," he added.
