The government has proposed increasing cigarette prices across all market segments in the 2026-27 fiscal year budget, while introducing new and higher duties on a range of emerging nicotine products.
Finance Minister Amir Khosru Mahmud Chowdhury unveiled the measures on Thursday as he presented the Tk 9.38 lakh crore national budget in Parliament.
Under the proposal, the minimum retail price for a pack of 10 cigarettes would rise to Tk 62 in the low tier, Tk 90 in the medium tier, Tk 160 in the high tier and Tk 210 in the premium tier. The increases range from Tk 2 to Tk 25 per pack, depending on the category.
The low-tier price would increase from Tk 60 to Tk 62, marking the smallest adjustment among the four segments. The medium tier would rise from Tk 80 to Tk 90, while the high tier would increase from Tk 140 to Tk 160. The steepest increase is proposed for premium cigarettes, with the price of a 10-stick pack rising from Tk 185 to Tk 210.
The proposed changes form part of the government's "sin tax" measures aimed at increasing the cost of tobacco products.
The budget also introduces new taxes on alternative nicotine products. For the first time, a supplementary duty of 350% has been proposed on imported nicotine pouches.
In addition, the government has proposed a 40% duty on nicotine granules and a 67% supplementary duty on heated tobacco products.
The measures are intended to broaden tobacco-related taxation beyond conventional cigarettes and bring newer nicotine products under the tax net.
