- Home appliances will become more expensive as VAT exemptions end.
- VAT exemptions on locally manufactured electronics will be phased out starting fiscal year 2025-26.
- A 5 percent VAT will apply to certain appliances until June 30, 2027, increasing to 7.5 percent on July 1, 2027, and 10 percent on July 1, 2029.
- Refrigerators, freezers, ACs, and compressors will have a flat 15 percent VAT from the next fiscal year.
- The reduced 7.5 percent VAT for ACs and refrigerators will expire on June 30.
- Preferential treatment for home appliances will end by July 1, 2031.
- Local manufacturers dominate the $8 billion home appliance market due to affordable prices.
- The proposed VAT will likely lead to price increases for essential consumer durables.
- A 10 percent supplementary duty on imported raw materials will be scrapped until June 30, 2028.
- Local manufacturers face cost pressures due to currency depreciation and added tax burdens.
- There is concern about treating essential household items as luxury goods.
Source: thedailystar.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
