The new government has reduced the minimum taxable value on seven categories of beauty products, including lipstick, skin cream, moisturizer lotion, and four types of face wash. This decision aims to lower import costs and potentially reduce market prices. However, it may also decrease government revenue. The reduction in minimum taxable value ranges from 25% to 30% for these products.
According to the National Revenue Board (NBR), the import of these seven categories of products amounted to 405 crore Taka from July 1, 2025, to the previous Wednesday. The government collected approximately 642 crore Taka in revenue from these imports.
The minimum taxable value for lipstick has been reduced from $40 per kg to $30 per kg, potentially lowering duty and tax by about 2,000 Taka per kg. This could reduce government revenue by approximately 1 crore Taka for lipstick imports in the current fiscal year.
For skin cream, the minimum taxable value has been reduced from $20 per kg to $14 per kg, potentially lowering duty and tax by about 1,226 Taka per kg. The potential reduction in government revenue could be around 75 crore Taka.
The minimum taxable value for moisturizer lotion and four types of face wash has been reduced from $10 per kg to $7 per kg, potentially lowering duty and tax by about 613 Taka per kg. This could reduce government revenue by approximately 50 crore Taka.
Although the minimum taxable value has been reduced, not all consignments will be taxed at this value. The actual taxable value may be higher based on product quality, brand, and declared value, which could mitigate the revenue shortfall.
Importers initially pay the duty and tax, which is then included in the retail price. Therefore, a reduction in import costs could lead to lower market prices. However, the actual benefit to consumers will depend on how much importers, distributors, and retailers adjust their prices.
The government has not provided relief on all beauty products. While the minimum taxable value has been reduced for lipstick, face wash, skin cream, and moisturizer lotion, other products like eyebrow grooming items and certain hand and foot care products remain unchanged. Additionally, the minimum taxable value for lip liner, lip gloss, and lip gel has been increased from $20 per kg to $30 per kg, which will increase government revenue.
