No Visible Change in Essential Commodity Prices Despite Tax Reduction Proposal

PNN News Desk | Dhaka

Despite proposals in the 2026–27 national budget to significantly reduce source taxes on various essential commodities, consumers have yet to see any visible impact in the marketplace. In fact, prices of rice, flour, and lentils have increased in several markets across the capital.

Visits to markets in Shantinagar, Karwan Bazar, and Turag on Friday revealed that the proposed tax reductions have not yet translated into lower consumer prices.

The budget proposed lowering source taxes on nearly 60 essential products, including rice, lentils, onions, ginger, garlic, sugar, salt, and edible oil. However, consumers claim the benefits have yet to reach them.

Market traders reported that prices of medium- and low-grade rice have risen by Tk 2–4 per kilogram. Pajam and Lata rice varieties are currently selling between Tk 55 and Tk 68 per kilogram, depending on quality. Coarse rice now costs between Tk 52 and Tk 60 per kilogram. Loose flour prices have increased by about Tk 5 per kilogram, while chickpea prices have risen by as much as Tk 5 to between Tk 90 and Tk 100 per kilogram.

Consumers argue that price increases are implemented immediately, while reductions are delayed by various excuses.

Business owners, however, contend that immediate price cuts are unrealistic because most products currently on sale were purchased under the previous tax structure. They believe the effects may become visible once new imports and supplies arrive.

A grocery trader in Turag noted that tax benefits require time to take effect and that market adjustments may occur once new shipments enter the supply chain.

Vegetable prices have offered some relief. Papaya, okra, pointed gourd, and several other vegetables are being sold at comparatively lower prices, with most remaining below Tk 60 per kilogram. The poultry market has also shown signs of stability, with broiler chicken prices falling by up to Tk 10 per kilogram and egg prices remaining steady.

Fish prices, however, remain high, with many varieties still beyond the reach of average consumers.

Consumers believe stronger market monitoring is needed to ensure that the benefits of tax reductions are passed on to the public and hope government measures will soon provide meaningful relief.