Cigarette prices across all tiers to raise in new budget

The government is set to increase cigarette prices across all four tiers in the upcoming 2026-27 national budget, aiming to reduce health risks associated with tobacco consumption, according to officials from the Ministry of Finance and the National Board of Revenue (NBR).

Under the proposed structure, the minimum retail price of 10 sticks of cigarettes will be revised upward across all categories. The low segment will rise from Tk 60 to Tk 62, the medium segment from Tk 80 to Tk 92, the high segment from Tk 140 to Tk 160, and the premium or very high segment from Tk 185 to Tk 210.

Finance Minister Amir Khasru Mahmud Chowdhury is expected to announce the revised pricing structure in his budget speech. The proposal also includes an increase in the supplementary duty on cigarettes to a maximum rate of 67 per cent.

Officials said the move is part of a broader strategy to discourage tobacco use and strengthen public health protection measures.

In a major policy shift, the government will also introduce pricing for nicotine pouches for the first time. The proposed budget sets the price of a 10-gram nicotine pouch at Tk 500, bringing the newly emerging tobacco product under the tax net.