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Prices of Petroleum Products, Luxurious Goods, Alcohols Likely to Rise

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Prices of Petroleum Products, Luxurious Goods, Alcohols Likely to Rise
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May 30: The government has decided to charge an additional Rs 1 tax on all kinds of petroleum products under the heading of road development charge in fiscal year 2019/20.  The additional tax will result in the rise of the prices of petroleum products.

Previously, the government had been collecting Rs 4 from petrol and Rs 3 tax from diesel as road development charge.  

Meanwhile, the budget announced on Wednesday, May 29, states that taxes on alcohols and luxurious goods have been increased by the government.

The increase in customs duty is likely to raise the price of the goods in the upcoming fiscal year.

The prices of tobacco, cigarettes and alcohols are expected to rise due to the increase in the customs duty.

The government decided to increase the customs duty of alcoholic beverages and tobacco under its policy to increase taxes on goods that are harmful for public health.

The tax on import of vehicles has remained unchanged and the prices of vehicles will remain as it is in the market. Likewise, the prices of the cell phones are likely to reduce. Tax on import of cell phones has been reduced to 2.5 percent in the new fiscal year budget.   Previously, the government had been charging 5 percent tax on import of cell phones.    

 

 

 

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