The upcoming national budget for the fiscal year 2025–26 is set at Tk 790,000 crore, which is Tk 70 billion less than the current year’s budget.
Despite the reduced size, the government is aiming to boost revenue by increasing source taxes, import duties, VAT, and surcharges on various goods, which may lead to price hikes for several consumer items.
Notable items that may see price increases include refrigerators and air conditioners, locally manufactured mobile phones, motorcycles, imported cosmetics and beauty products, imported toys and chocolates, razor blades, tableware, and disposable plastic items.
Today, Monday, the 55th national budget of Bangladesh will be announced by interim Finance Adviser Dr. Saleh Uddin Ahmed. The budget will be broadcast live on state-owned Bangladesh Television (BTV) at 3 PM. This marks the first time since independence that the budget size has been reduced compared to the previous year.
The total budget is proposed at Tk 7.90 trillion, down from Tk 7.97 trillion in 2024–25. Operating and non-development expenditure is estimated at Tk 5.50 trillion, compared to Tk 5.06971 trillion in the current year. The development budget is reduced to Tk 2.40 trillion from Tk 2.81453 trillion, and the Annual Development Programme (ADP) may be set at Tk 2.30 trillion, down from Tk 2.65 trillion.
According to Finance Ministry sources, the budget size is being trimmed to align with contractionary monetary policy aimed at curbing inflation and ensuring macroeconomic stability.
Air conditioners and refrigerators may become more expensive as the VAT on these products could be doubled from the current 7.5 percent to 15 percent. Locally manufactured mobile phones may also see a price increase due to a proposed 2 to 2.5 percent hike in VAT on production and assembly.
Motorcycles could become costlier as customs duties and VAT on imports and parts are expected to rise. Previous reductions in import taxes had little effect on prices, prompting a possible reversal in policy.
Imported cosmetics such as lipsticks, eyeliners, and face washes are also expected to see price increases due to a rise in minimum customs valuation. For example, the customs value for imported lipsticks may increase from 20 to 40 dollars per kilogram.
Imported toys and chocolates may face similar hikes. To protect local industries, the government is planning to raise the minimum customs value on these items. The customs valuation for chocolates may go up from 4 to 10 dollars, which will likely increase retail prices.
Plastic products, particularly single-use items like cups, plates, and bowls, may become more expensive due to a proposed VAT hike to 15 percent.
Other items that may become costlier include razor blades, construction materials such as rods, cigarette paper used in the tobacco industry, batteries for electric rickshaws, tableware, locally made yarn, imported helicopters, marble and granite, barbed wire, all types of screws and bolts, electric line hardware and pole fittings, self-copy paper, duplex and coated paper, nutritional supplements for pregnant and lactating mothers, beverage items, and door locks.
In the service sector, source tax on services provided by convention halls and conference centers may be doubled. Advance tax on commercial vehicles is set to increase, and surcharge on personal vehicles may also go up. A 20 percent tax deduction at source may apply to income from mobile tower-sharing companies and license fees, potentially leading to higher service charges in the telecom sector.
This budget aims to balance inflation control with revenue generation while scaling back public expenditure for better fiscal discipline.
SR
