The price of cigarettes in Bangladesh is likely to increase once again as the interim government prepares to unveil the national budget for the fiscal year 2025–26 today.
One of the key fiscal measures under consideration is a significant hike in the supplementary duty on imported cigarette paper — a move that could directly impact market prices.
According to finance ministry sources, the upcoming budget may propose raising the supplementary duty on cigarette paper imports from the current rate of 150 percent to 300 percent.
If approved, this would effectively double the import duty and potentially push cigarette production costs higher, leading to another price hike for consumers.
Finance Adviser Dr. Salehuddin Ahmed is scheduled to present the new budget through a pre-recorded speech broadcast live on Bangladesh Television (BTV) and Bangladesh Betar at 3:00 PM today.
All private TV and radio channels have been asked to relay the speech simultaneously to ensure wider reach.
The total budget outlay for FY2025–26 is expected to be around Tk 7.9 lakh crore, with a revenue target of Tk 5.64 lakh crore. The projected budget deficit stands at Tk 2.26 lakh crore.
While the government is not proposing any new changes in the existing price slabs or supplementary duties on cigarette tiers this year — which were revised in January — the focus on raising taxes on raw materials signals a shift toward discouraging tobacco use through indirect pricing pressure.
In January, the government had already increased both the price and tax on all four tiers of cigarettes, with supplementary duty rising by 5 to 7 percent per 10-stick pack across low, medium, and high segments.
The latest proposed duty hike on cigarette paper falls under a broader plan to strengthen domestic revenue collection and protect local industries, while also curbing the public health impact of tobacco consumption.
However, the move is also expected to raise concern among industry stakeholders about cost burdens and informal trade risks.
The final decision will be revealed once the finance adviser formally presents the full fiscal package this afternoon.
