Products likely to become more expensive in the FY2026–27 national budget

Prices of several consumer goods, including cigarettes, nicotine products, imported cashew nuts, premium frozen fish and luxury items, are set to increase if the proposed national budget for FY2026–27 receives parliamentary approval.

Finance Minister Amir Khosru Mahmud Chowdhury is scheduled to place the Tk9.38 lakh crore budget before Parliament at 3:00pm on Thursday (11 June).

According to the budget proposals, prices of cigarettes across all tiers are likely to rise. The government also plans to increase supplementary duties by 300% on raw materials used in cigarette filters and by 350% on nicotine, which could further drive up the cost of cigarettes and other nicotine-based products.

The budget is expected to introduce a VAT of Tk500 per litre on locally produced alcohol, potentially leading to higher retail prices of alcoholic beverages.

Import duties on cashew nuts may be raised from 5% to 25%, which could increase their prices in the domestic market. A 15% VAT is also proposed on high-value imported frozen fish, making such products more expensive for consumers. In addition, the government is considering raising taxes and VAT at the production stage of mild steel (MS) rods and related products by around 10%, a move that industry insiders say could push up construction costs.

Moreover, imported cosmetics, luxury goods, premium food items and 10 newly designated imported products may be subjected to a 20% VAT at the import stage, a measure expected to translate into higher prices in the local market.