The government has increased the price of low-tier cigarettes again, raising the maximum retail price (MRP) for a 10-stick pack to Tk 65 from Tk 62. The latest increase is Tk 3, or 4.84 percent, from the price set earlier this year. Compared with the Tk 60 MRP set in the FY 2026–27 budget, the overall increase is Tk 5, or 8.33 percent.

The National Board of Revenue (NBR) issued a notification on Thursday, September 17, setting the maximum retail price of 10 low-tier cigarette sticks at Tk 65. NBR Acting Chairman Ahsan Habib signed the notification. The prices of cigarettes in the other tiers have remained unchanged. The MRP for 10 sticks of medium-tier cigarettes is Tk 92, while high-tier and premium-tier cigarettes remain at Tk 160 and Tk 210, respectively.

This is the second increase in the price of low-tier cigarettes this fiscal year. In the FY 2026–27 budget, the government raised the MRP of 10 low-tier cigarette sticks from Tk 60 to Tk 62. At the same time, the prices of medium-tier cigarettes were increased from Tk 80 to Tk 92, high-tier cigarettes from Tk 140 to Tk 160, and premium-tier cigarettes from Tk 185 to Tk 210.

The government subsequently initiated another increase in the price of low-tier cigarettes. The Cabinet approved the proposal, following which the NBR set the maximum retail price for 10 sticks at Tk 65.

However, there are allegations that low-tier cigarettes are already being sold at prices higher than the government-fixed price in many places. As a result, questions remain over how much the latest increase will affect consumers. Revenue collection may increase to some extent from cigarettes sold at the officially fixed price.

The Cabinet approved the latest price increase at its 20th meeting on September 7. The meeting was held at the Cabinet Room of the National Parliament Complex.  According to a press release issued by the Cabinet Division, the Cabinet approved a proposal to revise the maximum retail price of 10 low-tier cigarette sticks from Tk 62 to Tk 65. The Cabinet also approved amendments relating to stamps and banderoles.

The Cabinet Division said the increase was expected to help curb illegal trade in cigarettes and reduce the government’s revenue shortfall.  With the latest increase, the price of low-tier cigarettes has now been raised twice during the current fiscal year—from Tk 60 to Tk 62 in the budget and subsequently from Tk 62 to Tk 65. Overall, the maximum retail price has increased by Tk 5, or 8.33 percent, from the price set in the budget.

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