Local lipstick, skincare makers get a blush of relief in budget proposal

The government has cut import duties on two raw materials used in skincare and beauty manufacturing, a move that could bring down the cost of locally produced cosmetics.

The proposed budget for 2026-27, placed in parliament on Thursday, also lowers the minimum assessable value on seven categories of beauty products -- including lipstick, skin cream, moisturising lotion, and facewash -- which could offer some relief to consumers on imported goods as well.

Presenting the Tk 9.38 trillion budget, Finance Minister Amir Khosru Mahmud Chowdhury said the supplementary duty on two raw materials used in local skincare and beauty production would be cut from 30 percent to 10 percent to encourage domestic manufacturers.

The reduction in minimum assessable values, while leaving duty rates unchanged, is expected to lower costs for importers.

Government revenue would take a modest hit, but consumers of the affected products could see some savings.

For lipstick, the minimum assessable value has been reduced from $40 to $30 per kg, cutting applicable duties and taxes by roughly Tk 2,000 per kg.

Skin cream drops from $20 to $14 per kg, a reduction of around Tk 1,226 per kg. Moisturising lotion and four types of facewash fall from $10 to $7 per kg, cutting duties by nearly Tk 613 per kg.

Not all shipments will be assessed at the minimum value, however.

Products may be assessed at higher rates depending on quality, brand, and declared value.

Eyebrow products and several items used in hand and foot care have been left out of the relief -- importers in those categories will see no change.

Lip liner, lip gloss, and lip gel, meanwhile, have seen their minimum assessable value raised from $20 to $30 per kg.

This is the first budget from the BNP government, which came to power with a sweeping majority in the February election.