Traders yesterday voiced that they are not sure as to how the budget will affect the wholesale and retail prices of different products as certain clauses of the budget proposal are still not clear to them and as there might be some changes in the proposed budget.

However, a visit to the market shows that there has been a marked increase in the prices of cigarettes. The retailers claimed this is due to the budget proposal of increasing duties on tobacco products.

The cost per stick of Gold Leaf and Benson and Hedges, two popular brands of British American Tobacco Bangladesh (BATB), has increased by Tk 0.50.

“The reason behind the price hike of our cigarettes in the retail market is probably the budget speculation as we have not increased cigarette prices,” said Jakir Ibne Hye, regulatory affairs manager of the company.

“The supply of our cigarettes to the retail market is steady,” he said. “There are no chances of increasing our cigarette prices over night as there are some processes and regulations that we have to follow in order to increase the price,” he added.

He is also not sure as to how much the cost of cigarettes will increase in the future after the government proposed to increase taxes on tobacco.

On the other hand, the computer markets of the city have not witnessed any effects of the budget. The traders said it would take around two months for the computer market to witness the budget reflection.

The finance adviser proposed to reduce import duties on computers to three percent from the existing five percent.

“The budget will be effective from July, and the letter of credits (L/Cs) which will be opened under the new budget, will witness the new duty structure,” said the shopkeeper of Computer Archives, Multiplane Center, New Elephant Road.