Cigarette prices to increase in upcoming budget

Cigarette prices to increase in upcoming budget

The National Board of Revenue (NBR) Chairman Md Abdur Rahman Khan has said initiatives have been taken to increase cigarette prices and rationalise the tax and duty structure in the upcoming national budget.

He made the remarks while chairing a pre-budget discussion held in Agargaon, capital, on Tuesday, March 31, ahead of the 2026-27 fiscal year budget.

He said inheritance tax will be introduced on a limited scale in the next fiscal year. Additionally, plans are in place to increase the income tax rate for high-income individuals by 5 per cent to 35 per cent from the 2027-28 fiscal year.

Highlighting progress in the tax system, the NBR chairman said the number of TIN holders was around 1.4 million in 2014, which has increased significantly after making it mandatory in various sectors. The rate of tax return submission has also increased this year after making income tax return filing compulsory, and it is expected to rise further in the future.

He further said plans are in place to introduce incentives in phases to encourage taxpayers. Those filing returns in the first quarter will receive special benefits, while those filing in the second quarter will be considered regular taxpayers. However, additional taxes will be imposed on those filing in the third and fourth quarters.