Staff Reporter :
The price of a number of products available in the market will witness both up and down trend after the presentation of the national budget for the 2022-23 fiscal year.
Finance Minister AHM Mustafa Kamal in his budget speech in parliament made the proposal for 2022-23 fiscal year on Thursday.
Price up:
Cigarettes
As per the minister’s proposal, the minimum price of 10 sticks of low-tier cigarettes will be set at Tk40 (Tk1 increase from previous fiscal), with a supplementary duty of 5pc.
Meanwhile, the minimum price of mid-tier cigarettes will be set at Tk65 (Tk2 hike), high-tier cigarettes at Tk111 (Tk9 hike), and premium tier cigarettes 142 (Tk7 hike), with a supplementary duty of 65pc for these tiers.
However, the government has decided to keep the existing prices of bidi unchanged.
Currently, the minimum price of 25-stick handmade bidi is Tk18, 12-stick bidi cost Tk9 and 8-stick bidi Tk6 – with a supplementary duty of 30% for all three.
The price of filter-tipped bidi is Tk19 for 20 sticks and Tk10 for 10 sticks, with a supplementary duty of 40pc for both.
Also, the prices of Jarda – Tk40 for 10gm, and Gul, Tk20 for 10gm – are to remain the same with a supplementary duty of 55pc for both.
Laptops
Laptop computers are going to be expensive in the next fiscal year as the finance minister has proposed to impose 15pc VAT on the import of the device.
“I am proposing to impose 15pc VAT on laptop computer imports,” Finance Minister AHM Mustafa Kamal said during the budget speech.
“Presently, Laptop computer imports are subject to VAT exemption. As a result, domestic computer manufacturers are facing uneven competition,” he said.
As a result, the total tax incidence of the product will be 31pc.
“For the protection of domestic computer and laptop and ICT product manufacturers, I am proposing to expand the concession facility for import of raw materials for computer accessories and ICT industry,” the minister further said.
To promote “Made in Bangladesh” branding worldwide and to protect the investment of domestic manufacturing industries, the finance minister proposed to withdraw the concessions on the import of printers and toner cartridges.
“This will help local manufacturers to reach the target of exporting digital devices,” he added.
Another products are- e-sim, Microbus, Cheese, curd, Shaving materials, Cleaning materials, Cosmetics, Air freshener, Anti-bacterial products, GI fittings, First-class railway services, Meditation services, Covid-19 test kits, PPEs, masks.
Price down
In FY2022-2023 those products price will come down:
Rod
A proposal has been made to fix VAT at the trading stage for M.S. products at Tk 200 per metric tonne instead of Tk 500 per metric ton.
Meal at restaurant
The finance minister proposed five per cent VAT on both AC and Non-AC restaurants instead of 10 per cent VAT on AC restaurant and 5 per cent VAT on non-AC restaurant.
However, hotels with three or more star, and restaurants, where alcohol is served, will have to pay 10 per cent VAT.
Towel
Proposal has been made to reduce the existing VAT rate on manufacturing hand towels / paper towels / clinical bed sheets from 15 to 5 per cent.
Yarn
Proposal has been made to reduce VAT on yarn made from man-made fiber and other fibers from Tk six per kg to Tk three per kg.
Animal feeds
The finance minister proposed to give VAT exemption at trading stage to those animal feeds which are already enjoying exemption at import and manufacturing stage.
Equipment for poultry farms
Proposal has been made to give advance tax exemption on import of machinery and equipment by registered poultry farms.
Sugar, puffed rice
Proposal has been made to provide VAT exemption at the trading stage for sugar and puffed rice.
Mobile accessories
Proposal has been made to give VAT exemption at manufacturing stage for mobile phone batteries, chargers and interactive displays for the development of information technology and computer industry.
Braille printing materials
Proposal has been made to give VAT exemption on Braille printing materials for visually impaired people as a social welfare service.
Poultry, dairy and fish feed
Proposal has been made to give VAT exemption on manufacturing and trading for poultry, dairy and fish feed products.
Power Tiller
Proposal has been made to give VAT exemption at manufacturing and trading stage for Power Tiller.
