Budget 2026-27: Cigarette prices set to rise

Smokers in Bangladesh could soon pay more for cigarettes as the government has proposed price increases across all cigarette categories in the national budget for the 2026-27 fiscal year. 

The budget also introduces new taxes on nicotine pouches and heated tobacco products as part of efforts to raise revenue and strengthen public health measures.

Finance Minister Amir Khosru Mahmud Chowdhury unveiled the proposals while presenting the Tk 938,000 crore national budget in Parliament on Thursday.

Under the proposed pricing structure, a 10-stick pack of low-tier cigarettes will cost Tk 62, up from Tk 60. 

Prices for medium-tier cigarettes will rise from Tk 80 to Tk 92, while high-tier brands will increase from Tk 140 to Tk 160. 

Premium cigarettes will see the largest jump, with the retail price climbing from Tk 185 to Tk 210 per pack.

The finance minister said the revised prices were designed to support government revenue collection while also discouraging tobacco consumption.

A notable feature of this year‍‍`s budget is the introduction of separate tax measures for nicotine pouches and heated tobacco products, which are becoming increasingly available in the market.

The government has proposed setting the retail price of a 10-gram nicotine pouch at Tk 500 and imposing a 40 percent supplementary duty on the product. 

Heated tobacco products would be subject to a 67 percent supplementary duty, based on a retail price of Tk 210 for every 10 sticks.

In a further move aimed at limiting the use of alternative nicotine products, the budget proposes a 350 percent supplementary duty on imports of nicotine pouches and nicotine granules under a new customs classification.

The government also plans to introduce a track-and-trace system for tobacco products to improve oversight of production and distribution and help combat the illegal tobacco trade.

Not everyone is convinced the measures will achieve their intended goal. 

Tobacco control researcher Sushanta Sinha said increasing retail prices without raising tax rates could leave room for multinational tobacco companies to earn higher profits. 

He also warned that smokers, particularly those who buy lower-priced cigarettes, may face a greater financial burden.