The prices of refrigerator, online sale, mobile phone, soap and plastic goods along with a number of other products would witness a hike in the 2025-26 financial year due to tax measures in the proposed budget for FY26.
Finance adviser Salehuddin Ahmed announced the聽 proposed budget in a speech through the Bangladesh Television and the Bangladesh Betar on Monday.
The value-added tax exemption facilities on locally manufactured lift have been withdrawn and additional 5 per cent VAT is imposed till June 30, 2027, 7.5 per cent till 2029, and 10 per cent till 2030.
According to the budget speech, the products, including LPG cylinder, mobile phone, washing machine, microwave oven, electric oven, juicer, grinder, mixer, electric kettle, iron, rice cooker, multi cooker and pressure cooker, soap raw materials and shampoo raw materials will face the same measure.
The VAT on the commission on online product sale has been hiked to 15 per cent from the existing 5 per cent.
The tax on MS products in the manufacturing level has been hiked to about 20 per cent and the VAT rate for the construction companies has been hiked to 10 per cent from the existing 7.5 per cent.
The VAT rate on mobile phone has been increased by 2-2.5 per cent based on production categories and the rates would stand at 4-10 per cent.
The VAT on cement sheet has also been raised to 15 per cent from the existing 5 per cent.
Moreover, the VAT on self-copy paper, duplex board and coated paper has been hiked to 15 per cent from existing the 7.5 per cent in the manufacturing level.
The VAT on all types of plastic kitchenware, tableware, home utensils, hygienic and toilet products has been set at 15 per cent from the existing 7.5 per cent in the manufacturing level.
In the manufacturing level, the VAT on cotton yarn has been hiked to Tk聽5 a kilogram from the existing Tk 3 a kilogram.
Moreover, the same rate has also been imposed on the manufacturing level of manmade fibre.
The VAT on blades at the production stage has been raised to 7.5 per cent from the existing 5 per cent.
The VAT in the manufacturing level of all types of screw, joint, nut, bolt, electric line hardware and pole fittings equipment has been hiked to 7.5 per cent from the existing 5 per cent.
A 300-per cent VAT has been imposed on commercial import of cigarette paper from the existing 150 per cent.
The OTT or over-the-top platform services has been defined and a 10 per cent supplementary duty has been imposed on them.
The government has revoked all types of VAT exemptions on local manufacturing of freezer, refrigerator, compressor and other equipment.
VAT exemptions for import of sterile surgical catgut, surgical suture, lifts and skip hoists, set top box, and ball point pen have also been revoked.
Salehuddin said that in the continuation of making the country鈥檚 direct tax system modern, fair, taxpayer-friendly and investment-friendly, several significant initiatives had been taken in the budget for the 2025-26 financial year.
With the aim of introducing a standard VAT and tax system along with increasing the tax-gross domestic product ratio, the VAT and tax rates have been reduced in some areas and increased in some areas.