The proposed Bangladesh national budget for fiscal year 2026–27 has made only a minimal increase in the price of low-tier cigarettes and kept taxes on bidi, gul, and jorda unchanged. According to research and advocacy groups PROGGA and ATMA, the lack of reform in the tobacco tax structure and the failure to introduce a specific excise system will make tobacco products more affordable in real terms, potentially increasing consumption and related health risks. The groups warn that the government will also lose the opportunity to raise significant additional revenue.

Under the proposal, the price of a 10-stick pack of low-tier cigarettes would rise by only 2 taka to 62 taka, a 3.33 percent increase, far below the 10.27 percent growth in per capita income. Prices for mid-tier, high-tier, and premium cigarettes would rise by 15, 14.29, and 13.51 percent respectively. PROGGA and ATMA argue that merging the lower tiers and introducing a specific tax could generate about 440 billion taka in extra revenue and prevent roughly 400,000 premature deaths.

The budget also proposes new taxes on nicotine pouches and heated tobacco but ignores the Health Ministry’s call to ban them, raising further public health concerns.