Large range of products, commodities to see price hike

HM Murtuza | Published: 00:35, Jun 02,2017 | Updated: 02:04, Jun 02,2017

 
 

Prices of a number of consumer products and commodities, including local cloths, spices, cosmetics, imported mobile phone, fast food and imported motor car, will go up due to increase in different types of taxes in the proposed budget for 2017-18 fiscal.
Besides, there will be a general hike in consumer products and commodities due to imposition of a 15 per cent uniform VAT from the upcoming fiscal.
As per the proposed budget, prices of spices including peppercorn, cinnamon, cardamom and cumin will increased on an average 10 per cent.
Although the government reduced import duty to five per cent from 25 per cent on peppercorn, cinnamon, cardamom and cumin, the supplementary duty on those products has been increased to 50 per cent from the existing 20 per cent.
Increased customs duty will push up prices of finished poultry feed, which might increase poultry price for the consumers.
Prices of locally branded cloths are feared to soar due to imposition of a uniform 15 per cent value added tax from the existing five per cent.
Prices of motor car and other motor vehicles including station wagon in completely knocked down (CKD) condition with engine capacity ranging between 1,600 and 4,000 cc to face sharp rise following increased supplementary duty, while prices of other motor cars will remain unchanged.
Supplementary duty on motor cars with engine capacity between 1600 and 2000 cc will be increased by 60 per cent from 30 per cent.
Cars in CKD condition with engine capacity between 2000 and 3000 cc will face 150 per cent SD that was 60 per cent in the outgoing budget.
Motor car with engine capacity between 3,000 and 4,000 cc will be subject to 300 per cent SD at import level, when that tax was 60 per cent in the existing budget. Cars with engine capacity more than 4000 cc will be subject to 350 per cent SD.
Supplementary duty on completely built unit of imported cars will mostly remain unchanged.
An additional five per cent supplementary duty will be imposed on the import of cosmetics. SD on cosmetics will be increased to 50 per cent from the existing 45 per cent.
The finance minister in his budget speech also fixed price of the low segment of every 10 sticks of local brand cigarette at Tk 27 from existing Tk 23 and increase the supplementary duty rate to 52 per cent from the existing 50 per cent.
At the same time, he proposed to introduce and fix the price of the low segment for every 10 sticks of international brand cigarette at Tk 35 and the supplementary duty rate at 55 per cent.
Besides, prices of most of the imported electronics and electric products, including mobile phone, accessories and software will also be increased.
Construction materials like MS rod and seasonal brick will also face price hike due to the imposition of a 15 per cent VAT.
Expenditures for studying at the English-medium schools will also be subject to 15 per cent VAT.
Government, in addition to 15 per cent VAT, also imposed 10 per cent supplementary duty at local supply stage on fast food, which finance minister AMA Muhith termed as ‘junk food’ considering the health risk of future generation.
Prices of locally developed software, mobile phone, computer and laptop will, however, fall due to reduced taxes on those products in line with government’s move to support the local entrepreneurs.
All the raw materials which would be required to manufacture software, mobile, computers will face only one per cent import duty while the current tax rate ranges between 5 and 25 per cent.
Price of LP gas cylinder with capacity below 5000 litres would decrease due to fall in customs duty to five per cent from the existing 10 per cent.
Prices of imported hybrid motor car and other hybrid vehicle including station wagon in CBU condition will decline due to a reduction in supplementary duty.
Supplementary duty on hybrid motor car of upto 1600 cc will be reduced to 25 per cent from the existing 30 per cent while SD for such cars with engine capacity ranging between 1600 and 2000 cc will be reduced to 25 per cent from the existing 60 per cent.
Supplementary duty on hybrid motor car with engine capacity ranging between 2000 and 3000 cc will be reduced to 60 per cent from the existing 150 per cent.

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