Budget 2021-22: Prices up, prices down
Published: 06:43 PM, 3 June 2021
Finance Minister AHM Mustafa Kamal has introduced the proposed budget for the 2021-22 fiscal year in the Jatiya Sangsad. In this year’s budget – income tax, duty, VAT or supplementary duty has been increased on some products, resulting in the increase of these products in the future.
Let’s take a look at what products’ prices may increase in the new budget –
Liquor and beer
20 percent “advance income tax” has been imposed on the import of liquor and beer in this year’s budget. As a result, the prices of liquor and beer may increase in the future.
The price level and supplementary duty on cigarettes are increased every year. Although the supplementary duty has not been increased this year, the price level of “premium quality” cigarettes has been increased, but not in domestic cigarettes. For this, the price of cigarettes may go up.
Tiles and sanitaryware
Distributors and dealers of tiles and sanitaryware have been charged 15 percent VAT on their net commission. So, the price of these may go up a bit.
Theme park ride
20 percent supplementary duty has been imposed on the ride equipment for the setting up of an amusement park or theme park. So, the cost of setting up a children’s recreation center may increase.
More products that will hike in price
The budget also proposes to increase tariffs on carrot and mushroom imports. It is also proposed to fix minimum dutiable prices for carrots, mushrooms, green chilies, tomatoes, oranges and capsicums. As a result, the prices of these products may go up.
In the proposed budget, it has been proposed to increase the existing tariff rate on industrial salt imports. It is also proposed to increase the tariff rate on processed meat imports and fix a minimum tariffable price. As a result, the prices of these two products may also go up.
Price will increase on the imported cell phones, imported iron wire, imported meat, meat, sugar confectionary, vehicles’ safety glass, iron bar and rods, motor over 750W, mineral oil, soap, carnival/entertainment articles, rice bran oil and mushroom.
Let’s take a look at what products’ prices may go down in the new budget –
Prices of sanitary napkins can be reduced. This is because in the proposed budget for the 2021-22 fiscal year — the total value-added tax (VAT) of napkins produced in the country has been exempted. Besides, the VAT exemption facility on the import of raw materials has been extended for two years.
The tax exemption facility on COVID Kit protection materials was already there. Now, duty exemption has been given on the import of raw material for making RT-PCR kit for Covid-19 detection.
The supplementary duty on toilet pan produced in the country has been lifted to increase the sanitation facilities for the people of the rural areas. It had a 10 percent supplementary duty.
This has been exempted from VAT. VAT exemption on meditation services has been extended for one year.
The specific duty on steel has been reduced from Tk 1,500 per tonne to Tk 500 per tonne.
Chicken/Fish meal products
A discount facility has been given for the import of chicken/fish meal products. This will create opportunities to reduce the price of chicken, fish and cattle feed.
The government has again given duty exemption on raw materials for the production of cancer drugs. This will reduce the cost of producing cancer drugs. Apart from this, some other raw materials of the pharmaceutical industry have also been given duty exemption.
Concessions have been granted on the import of materials for the production of several medical parts.
Domestic LPG Cylinders
Concessions facilities have been for the import of raw materials for the production of LPG cylinders in the country.
The government has given concessional facilities for the import of materials for the production of toys in the country.
Blood tubing set tax using dialysis service has been reduced.
Besides, locally manufactured or assembled blender, juicer, mixer, grinder, electric kettle, rice cooker, multi-cooker, pressure cooker, washing machine, microwave oven, and electric oven.
Locally produced or assembled computer, laptop, notebook, notepad, tab, keyboard, mouse, motherboard, power bank, router, network switch, network device/hub, speaker, sound system, earphone, headphone, pen drive, micro SD card, flash memory card, CCTV, monitor, projector, USB cable, data cable, power tiller, combined harvester.
It is to be mentioned that the size of this year’s budget is Tk 6,03,681 crore - the largest price in the history of the country. This is the largest budget in the history of the country. This is the 50th budget of the country, the 21st budget of the Awami League government and the third budget of the present Finance Minister.