The government has decided to keep bidi prices and related tax rates unchanged in the national budget for the 2026-27 fiscal year, according to Finance Minister Amir Khosru Mahmud Chowdhury.
The announcement was made on Tuesday in the Jatiya Sangsad while responding to a query from reserved seat Member of Parliament Rasheda Begum Hira during the question-and-answer session. The decision means that there will be no increase in the retail price of bidis in the upcoming fiscal year.
During the session, the MP had asked whether the government planned to revise the taxation structure on tobacco products, including maintaining the existing 15 percent value added tax (VAT) and 1 per cent health development surcharge on bidi retail prices, while increasing supplementary duties and specific taxes on packs of 20 bidis.
In response, the finance minister confirmed that the current pricing and tax structure for bidis would remain unchanged in 2026-27 fiscal year, effectively maintaining continuity with the previous fiscal year’s fiscal policy regarding tobacco products.
The decision is expected to keep the retail cost of bidis stable in the domestic market, at a time when fiscal measures on tobacco products are often adjusted in line with public health and revenue considerations.
Officials said the unchanged tax policy reflects the government’s current stance on maintaining stability in tobacco pricing while continuing to apply existing VAT and surcharge mechanisms without modification for the upcoming fiscal cycle.
