The upcoming budget of Bangladesh may be introduced significant tax rate hikes on essential items, posing potential implications for mobile devices including other electronic equipments. Items such as plastic and aluminum utensils, toilet tissue, pens, and mobile phones will experience higher taxes, while import duties on cashew nuts, dates, and other food items will be increased. These measures aim to bolster revenue generation and address duty evasion.
To meet the ambitious revenue target for the next fiscal year, the National Board of Revenue (NBR) is considering raising tax rates and exploring additional avenues to boost collection.
Tax rate may be increased on mobile devices
The adjustments in duty and value-added tax (VAT) rates on goods in each budget lead to price fluctuations in the market. Following the International Monetary Fund’s recommendations, tax rates on various commodities are being increased to enhance tax collection. As a result, prices for these products are expected to rise.
Along with other electronic equipment, many sources thinking that tax rate may be increased on mobile devices by next budget. Which seems trustworthy when tax has already implemented for several times in few months.
Import duties on microwave ovens are being raised to prevent duty evasion, potentially resulting in higher prices for foreign-made ovens. However, VAT exemptions for domestically manufactured ovens may offset the impact.