In the proposed budget for the 2026–27 fiscal year, the government may increase taxes, customs duties, and VAT on various products and sectors. As a result, the prices of some consumer goods, import-dependent products, and luxury items are expected to rise.
The first budget of the government led by Prime Minister Tarique Rahman will be presented at 3:00 PM on Thursday, June 11. Finance Minister Amir Khasru Mahmud Chowdhury will place the budget before the National Parliament.
According to sources at the Ministry of Finance, the proposed budget size is expected to be Tk 938,000 crore. The target for total revenue collection has been set at Tk 695,000 crore, while the overall budget deficit may reach Tk 243,000 crore.
The budget aims to achieve GDP growth of 6.5% and keep inflation at 7.5%. In addition, around Tk 300,000 crore is expected to be allocated for the Annual Development Programme (ADP).
Products That May Become More Expensive
Cigarettes and Nicotine Products
The proposed budget includes plans to increase the price bands for all categories of cigarettes. At the same time, supplementary duties may be increased by 300% on raw materials used for cigarette filters and 350% on nicotine. As a result, cigarette and nicotine-related products are likely to become more expensive.
Proposed price bands:
- Low-tier pack of 10 cigarettes: Tk 62
- Mid-tier: Tk 92
- High-tier: Tk 160
- Premium tier: Tk 210
Alcohol
A proposal has been made to impose VAT of Tk 500 per liter on domestically produced alcohol, which could increase the prices of such products.
Cashew Nuts
The import duty on cashew nuts may be increased from 5% to 25%, potentially raising the market price of imported cashews.
Frozen Fish
A 15% VAT may be imposed on high-value imported frozen fish, which could lead to higher retail prices.
Steel Rods and Construction Materials
Taxes and VAT at the production stage for products including mild steel (MS) rods may be increased by around 10%. This could also affect the construction sector.
Luxury and Imported Goods
A 20% VAT may be imposed at the import stage on foreign cosmetics, luxury goods, high-value imported food products, and 10 additional categories of imported products. As a result, the prices of these items may increase.