Air Conditioner Prices Expected to Rise in Bangladesh

Bangladesh: The government has proposed a 7.5% value-added tax (VAT) on air conditioners for the next fiscal year's budget, a significant increase from the current 5%.

This proposal comes amid a surge in air conditioner sales, with an estimated 530,000 units sold in 2023 due to persistent heat waves. However, the new VAT rate could potentially slow down this growth, as higher costs may impact consumer purchasing decisions.

Finance Minister Abul Hassan Mahmood Ali presented the proposed budget for the 2024-2025 fiscal year, amounting to Tk 7,97,000 crore (USD 68 billion) in parliament on Thursday.

Source: Daily Observer