Cigarette Prices Set to Rise in New Budget

Prices of cigarettes and other tobacco products are set to rise significantly as the government moves to discourage smoking and increase revenue collection in the upcoming budget.

Finance Minister Amir Khasru Mahmud Chowdhury is expected to announce the revised tax structure for the fiscal year 2026–27 budget in Parliament on Thursday.

Under the proposed changes, prices across all cigarette tiers will increase. The lowest-tier cigarettes will rise from Tk 60 to Tk 62 per 10-stick pack.

For medium-tier cigarettes, the price will go up from Tk 80 to Tk 90, while high-tier packs will increase from Tk 140 to Tk 160.

The sharpest rise will be in premium cigarettes, where a 10-stick pack will jump from Tk 185 to Tk 210.

The budget proposal also includes new pricing and tax measures for alternative tobacco products. Nicotine pouches have been assigned a maximum retail price of Tk 500 per 10 grams, along with a 40 percent supplementary duty and a proposed 350 percent import duty.

For heated tobacco products, the maximum retail price has been set at Tk 210 per 10 sticks, with a 67 percent supplementary duty and a possible 1 percent health development surcharge.

In addition, locally produced alcoholic beverages will face a supplementary duty of Tk 500 per litre at the production stage.

Officials said the measures aim to reduce the consumption of harmful products while also strengthening government revenue collection.