let’s break down this new budget for Bangladesh 2023-2024. Most of the VAT or import duty burden falls on the higher or middle class’ purchasing capacity. There is no increase in the basic commodities used by ordinary people.
Be prepared for a potential rise in the cost of air conditioners and refrigerators. But the most unexpected sting might come from the essential side of things. The import duty on LED bulbs and electric meters has been raised, sparking concerns about affordability. With LED bulbs being the energy-efficient choice and electric meters crucial for electricity access, this could have a ripple effect on household budgets
It’s great they’re cracking down on fancy cars for politicians and trying to get people to smoke less with that tax on cigarettes. Every day folks won’t see much change in their groceries, that’s a relief. But ouch, that bump in phone call costs? Not cool.
LED bulbs? Yikes, another price hike that might hit everyone’s wallet. I mean, everyone needs light bulbs!
After the election, the Bangladesh government proposed a new budget for the country.In this new budget, the government announced some significant tax increases on certain products that are unlikely to affect the overall economy.
Ordinary people will be affected by the increased cost of mobile phone calls as the government will raise the supplementary duty. As a result, when a person recharges 100 Taka, they will only receive 69 Taka.
Cigarettes: Adding a supplementary duty on cigarettes can be a very promising step for the nation’s overall health. These are now subject to a 65% supplementary duty.
Ice cream: The price of ice cream has increased by an additional 5% because the supplementary duty is now 10%. While it may not be considered a general food for the public, it is often consumed by middle and upper-class people and students, making it more expensive for them.
Electric meter: The increase in import duty on electric meters from 15% to 25% is illogical. Electric meters are essential commodities, and electricity is a basic need. The increase in import duty on electric meters is unwelcome to ordinary people because it will raise the cost of electricity consumption in Bangladesh.
Clean Water for All? Budget Aims to Boost Local Production
The new 5% added import duty on water filters was intended to encourage domestic production of water filters in Bangladesh. However, the country’s current water filter production capacity is insufficient to meet demand. Therefore, the price increase in water filters will further impact the ability of ordinary people to access clean water.
AC: In Bangladesh’s new budget, the price of air conditioners is expected to increase due to a rise in the tax on all types of AC materials from 5% to 7.5%. This will also lead to a significant increase in refrigerator prices, although the exact amount is unclear as manufacturers may significantly raise the final selling price.
LED bulb: Most economists advise against the additional 10% import duty on LED bulbs due to the overall price increase it will cause for ordinary people. Everyone uses electricity and needs LED lights. A 10% increase may lead manufacturers to raise the maximum retail price by 20% or 30% to maintain their profit margins
