At present, several companies in Bangladesh, including Walton, Electromart, Transcom, Esquire, Singer Bangladesh, Butterfly, Rangs, Electra International, Minister, Vision and LG produce and market air conditioners, refrigerators and other electronic appliances in the country.

According to NBR sources, the VAT rate at the production stage for refrigerators, freezers and air conditioners was 5 per cent until the 2023–24 fiscal year. It was raised to 7.5 per cent in 2024–25 and further increased to 15 per cent in the 2025–26 fiscal year.

Industry stakeholders say the proposed VAT reduction will have a positive impact on the sector and may as well help lower prices for consumers. Pran-RFL Group is one of the leading local manufacturers in this sector.

When contacted, Pran-RFL Group Marketing Director Kamruzzaman Kamal told Prothom Alo that demand for refrigerators, freezers and air conditioners is rising.

He said a VAT cut would benefit local industries. If VAT is reduced, prices will certainly drop.