The dream of building a home is set to face a significant financial blow as the budget guidelines for the 2026-27 fiscal year propose increased import and supplementary duties on various construction and home decor materials.
The hikes target raw materials for bricks, tiles, pipes, boards, and furniture, raising concerns that the overall cost of building and furnishing homes will rise substantially.
According to budget documents released by the Ministry of Finance, these increases in import-stage duties are expected to drive up production costs. Traders and businesses fear that these additional taxes will ultimately be passed on to the consumer, leading to higher prices for new home construction, flat interior decorations, and furniture.
Experts warn that the housing sector will feel the impact, with both private construction and renovation costs likely to increase, putting middle and lower-middle-income families under further financial pressure.
Bricks and tiles, fundamental components of construction, are among the hardest hit. The proposed budget seeks to increase the import duty on ceramic bricks, blocks, and tiles from the existing 1% to 5 per cent. Furthermore, the duty on gypsum plaster, which is widely used for wall and ceiling finishing, is proposed to double from 5 per cent to 10 per cent, significantly increasing the primary costs of masonry and finishing.
The cost of sanitary installations and interior works is also expected to climb. The import duty on copper tubes and pipes, essential for plumbing, is set to rise from 15 per cent to 25 per cent. Similarly, MDF boards of all thicknesses-used extensively for doors, cabinets, and interior decoration, will see an import duty hike from 15 per cent to 25 per cent. Consequently, the cost of interior furnishing and furniture manufacturing is expected to rise notably.
The duty hikes extend beyond structural materials to include daily essentials for the home. For the first time, a 10 per cent supplementary duty has been proposed for mattresses, sleeping bags, and quilts, items that previously faced no such tax.
Real estate entrepreneurs and general buyers have expressed concern, noting that the construction material market is already trending upwards. They argue that specific duty increases on ceramic tiles, boards, and pipes will place the housing sector under even greater strain. For individuals undertaking private small-scale building projects, these policy changes are expected to create significant budget deficits.
