Budget FY25: Price up, price down

The government has proposed to raise tax and other duties on several products and services in Thursday's proposed national budget for fiscal year 2024-25 (FY25).

Summer essentials such as ice cream, soft drinks, air conditioners and refrigerators are set to become costlier as value-added tax (VAT) and supplementary duty (SD) will be added to them.

The government has proposed imposing a 7.5% VAT on ACs and 7.5% VAT on refrigerators and freezers.

They also proposed increasing SD on ice cream to 10% from the existing 5% and making it 30% for carbonated beverages from the current 25%.

Finance Minister Abul Hassan Mahmood Ali announced the country's largest budget till date before the Parliament, far from the first budget of Tk786 crore placed by Tajuddin Ahmad for FY1973.

This is the country's 54th budget and the 25th of the Awami League (AL) government in six terms.

This budget will also be the 21st under the rule of Prime Minister Sheikh Hasina in different terms, but the first for Finance Minister Mahmood Ali.

Usually, the size of a new budget increases by 10% to 12% compared to the current year's budget, but this time it will increase by less than 8%. 

The latest budget is contractionary, with a lowered GDP growth of 6.7%.