The government has approved a fresh price hike for low-tier cigarettes, raising the minimum retail price for a pack of ten sticks to 65 taka, up from 62 taka. The decision was reached during the 20th Cabinet meeting held on Monday, 7 September, at the National Parliament Building.
According to an official press release issued following the meeting, the revision aligns with the Value Added Tax and Supplementary Duty Act, 2012. To execute the price adjustment, the Cabinet approved proposals to refine two existing gazette notifications governing cigarette pricing as well as the application of security stamps and banderoles.
Government officials explained that the price revision aims to curb the illegal trade of low-grade tobacco products while recovering revenue deficits within the sector. The latest increase comes shortly after prices across all cigarette tiers were adjusted in the 2026-27 fiscal budget. In that budget, the lowest-tier ten-stick pack saw an initial increase from 60 taka to 62 taka. Monday’s Cabinet decision imposes an additional 3 taka increase, pushing the entry-level price point to 65 taka.
Retail prices across higher market segments remain unchanged. Middle-tier cigarettes continue at 92 taka per ten sticks, high-tier products remain at 160 taka, and premium-tier brands stay at 210 taka and above.
Alongside the tobacco decision, the Cabinet approved a substantial tax exemption package for equipment and machinery imported for renewable solar energy production. Under the approved measure, imports cleared within 180 days from the issuance of the official government directive will be exempt from all import duties exceeding 1 per cent. The relief covers regulatory duty, supplementary duty, value-added tax (VAT), advance tax, and advance income tax.
The Cabinet also cleared a proposal to sign a bilateral investment protection and expansion agreement with Hong Kong. Valid for a ten-year duration, the accord is expected to boost direct foreign investment from Hong Kong into Bangladesh, encouraging industrial development and job creation.
