Budget 2025-26: Increased Costs for Women’s Grooming Products

Staff Reporter

In the budget for the 2025-26 fiscal year, a proposal has been made to increase the minimum valuation for importing cosmetics products for women, including lipstick, eyeliner, and face wash. As a result, the customs duty on foreign cosmetics will rise significantly.

On Monday at 3 PM, Dr. Salehuddin Ahmed, the financial advisor of the interim government, began presenting the budget for the 2025-26 fiscal year. This is the first budget of the interim government and the 54th national budget in the country’s history. As there is no parliament in session, the financial advisor’s budget speech was broadcast on Bangladesh Television and Bangladesh Betar.

The interim government has introduced this measure to increase women’s expenses in its first budget. To achieve this, the tax rate was not raised, but the minimum valuation used for customs assessment has nearly doubled. Consequently, the customs duty has also almost doubled.

An analysis of import data for these products over the last 11 months by the National Board of Revenue (NBR) reveals that this new measure could increase government revenue by approximately Tk 800 crore annually.

Importers initially pay this revenue to the government when bringing in these grooming products. Later, the cost will be added to the retail price of the goods. This means consumers will ultimately bear the additional Tk 800 crore in expenses each year.

Take lipstick, for example. Until now, the minimum customs valuation for this product was $20 per kilogram. The total duty rate was 157.30%, meaning importers had to pay Tk 3,915 per kilogram in customs duty. The budget has doubled the minimum valuation to $40 per kilogram.

This means, regardless of the actual import price, customs will be assessed at a minimum of $40 per kilogram. As a result, the duty per kilogram will now be around Tk 7,830.

Many people use lip liners before applying lipstick. Here, too, costs will rise. Previously, standard-quality lip liners were assessed at $10 per kilogram. Now, the minimum valuation has been increased to $20 per kilogram. Where importers previously paid Tk 1,957 per kilogram in duty, they will now have to pay double.

After accounting for higher lipstick costs, those who want to enhance their eyes and eyebrows will also need to adjust their budgets. Whether buying mascara, eyeshadow, or kajal, they will have to spend a bit more. Previously, these products were assessed at a minimum of $7 per kilogram. The proposed budget raises this to $10 per kilogram. Where importers once paid Tk 1,371 per kilogram in duty, they will now pay around Tk 2,000.

Additional costs will also apply to hand and foot care products. Previously, importers paid Tk 979 per kilogram in duty for these items. Now, they will have to pay Tk 1,958. This increase is solely due to the higher minimum valuation.

Face wash, used before and after makeup, will also become more expensive. The minimum valuation for imported face wash has been raised from $6.50 to $10 per kilogram. Previously, importers paid around Tk 1,500 per kilogram in duty. Now, it will increase to Tk 2,200.

Other foreign cosmetics that will require consumers to adjust their budgets include foundation, makeup kits, skin-whitening creams, powder, and moisturizing lotions. The minimum valuation for these products has also nearly doubled.

Essentially, the government has targeted women’s grooming products to boost revenue. NBR data shows that over the last 11 months, 4.5 million kilograms of grooming products across 10 categories were imported. The customs valuation for these products was Tk 500 crore, with the government collecting Tk 789 crore in revenue.

By the end of the year, this figure could rise to over Tk 800 crore. Due to the increased minimum valuation, government revenue from this sector may grow by Tk 800 crore in the next fiscal year—a cost that will ultimately be passed on to consumers.