Finance adviser Salehuddin Ahmed on Jun 2 unveiled the proposed national budget for the financial year 2025–26, introducing revisions in Value Added Tax (VAT) and duties on a broad range of products.

These adjustments, made effective immediately, are expected to cause significant fluctuations in the prices of both everyday commodities and specialized goods and services.

The national budget announcement, made through state-run broadcasters Bangladesh Television (BTV) and Bangladesh Betar, has already stirred conversation among consumers and businesses alike.

With new tax rates taking immediate effect, several goods and services are set to become more expensive, particularly those in the household and technology categories.

Products that will see a hike in price include all types of tableware, kitchenware, and general household goods, particularly those made of plastic. Hygienic items and toiletries, cotton yarn, synthetic yarn, and other mixed fibre products are also included in the list.

Hardware items such as blades, screws, joints, connectors, nuts, bolts, and electric pole fittings are subject to higher taxation.

In the electronics and appliance sector, prices will increase for mobile phones, elevators, washing machines, microwave ovens, electric ovens, blenders, juicers, mixers, grinders, electric kettles, irons, rice cookers, multicookers and pressure cookers.

Construction services are also affected and will now cost more due to tax adjustments.

However, the budget also provides relief in several essential and eco-friendly product categories. Goods that will become cheaper include sanitary napkins, diapers, packaged liquid milk, and ballpoint pens.

The price of ice cream and computer monitors is also set to fall, along with liquefied natural gas (LNG).

Handicrafts and utensils made from natural or biodegradable materials like leaves, bark, flowers, and handmade clay will see reduced prices, as will textile-grade PET chips.

With this mix of price increases and reductions, the FY26 budget marks a fiscal shift that aims to balance revenue generation with consumer affordability.

Economists suggest the budget’s dual approach reflects a strategy to support sustainable goods while increasing revenue from high-demand household and tech products.

The immediate effect on prices is likely to impact household budgets across the country as consumers and retailers begin adjusting to the new rates.