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In the proposed national budget for FY 2025–26, the Chief Economic Adviser has recommended increasing duties and VAT on a range of consumer goods, including mobile phones, washing machines, LPG cylinders, and cosmetics such as lipsticks. The VAT exemption benefits for manufacturing items like washing machines, microwave ovens, blenders, juicers, irons, rice cookers, and pressure cookers have been partially reduced. VAT on plastic household items has been doubled to 15%, although environment-friendly alternatives remain exempt. The VAT exemption period for locally produced LPG cylinders has been extended, but the exemption itself has been slightly reduced. Import valuation for cosmetics used on the lips, eyes, and face has been significantly increased, potentially raising their market prices.

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