Biscuit, sweetmeat may be cheaper

The value added tax (VAT) on locally made biscuits and sweetmeat is likely going to be reduced in the national budget for fiscal year 2023-24 being announced today.  

Meanwhile, prices of plastic goods used in households and all types of tissue paper may be raised in the budget.

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Prices of raw materials used to make biscuits and sweetmeat have increased over the past few months and a VAT reduction has been sought from 15 per cent to 7.5 per cent for sweetmeat, said a finance ministry official.

Similarly, a 5 per cent VAT will be levied on biscuits costing Tk 200 per kilogramme (kg) and cakes which cost Tk 300 per kg, which earlier were Tk 150 and Tk 250 respectively.

People in the bakery industry said raw material prices have gone up anywhere from 30 per cent to 60 per cent owing to a revival of demand following supply chain disruptions globally.

As a result, the businesses have been forced to reduce packet sizes or revise prices.

Considering environmental issues, the VAT on almost all types of plastic products including tableware and kitchenware has been increased from 5 per cent to 7.5 per cent, the official said.

However, tiffin boxes and water bottles will be charged a VAT of 5 per cent as before.

Similarly, a 7.5 per cent VAT instead of 5 per cent will be applicable on toilet tissue, facial tissue, hand towels, paper towels, clinical bedsheets and tissue napkins, officials said.

Moreover, a 7.5 per cent VAT will be collected on kitchen, household and sanitaryware products made of aluminium. As a result, the prices of these products may increase slightly, officials said.