The interim government will present the Tk 790,000 crore budget for the 2025-26 fiscal year in Parliament today (Monday), with Finance Advisor Dr. Salehuddin Ahmed set to deliver the announcement. As per tradition, the new budget is expected to raise taxes on several products, leading to potential price hikes, while offering tax relief and subsidies in select sectors to lower prices.
One key focus is the tobacco industry, where the budget proposes a significant increase in the supplementary duty on cigarette paper, rising from 60% to 100%. While there will be no new tax hikes directly on cigarette tiers, this move could still cause retail cigarette prices to rise indirectly.
This policy shift comes amid growing concern over public health and economic costs. Bangladesh has 37.8 million adult tobacco users, and tobacco-related illnesses claim over 161,000 lives annually. In the 2017–18 fiscal year alone, the economic loss from tobacco use—via healthcare costs and lost productivity—was Tk 30,560 crore.
The proposed budget aims to balance fiscal growth with public welfare, but rising costs of tobacco-related products could spark debate among industry stakeholders and public health advocates alike.
