Govt proposes higher cigarette prices across all tiers

The government has proposed raising prices of cigarettes at all tiers in the FY2026-27 budget as part of efforts to balance revenue collection with public health concerns.

The government has proposed higher retail prices for cigarettes across all tiers in the national budget for FY2026-27, Finance Minister Amir Khosru Mahmud Chowdhury said while presenting the budget in Parliament on Thursday.

He said the move aims to strike a balance between revenue generation and public health protection from tobacco-related risks.

Under the proposal, the minimum retail price for 10 sticks of cigarettes has been set at Tk 62 for the low tier, Tk 92 for the medium tier, Tk 160 for the high tier, and Tk 210 for the premium tier.

At present, low-tier cigarettes cost Tk 60 per 10 sticks, medium-tier Tk 80, high-tier Tk 140, and premium-tier Tk 185, meaning prices will increase across all segments if the proposal is implemented.

The budget also proposes a 350 percent supplementary duty on imported nicotine pouches for the first time, along with new tax structures for heated tobacco products.

Authorities also plan to introduce a “track and trace” system to monitor tobacco production and supply to curb illegal trade and tax evasion.

TZ