Products that could see price hikes in National Budget FY2026-27

Prices of several consumer commodities, including cigarettes, nicotine products, imported cashew nuts, premium frozen fish and luxury goods, are likely to rise if the proposed national budget for FY2026–27 is approved.

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

According to budget proposals, the government plans to raise price for all tiers of cigarettes. Supplementary duties may also be increased by 300% on raw materials used in cigarette filters and by 350% on nicotine. As a result, cigarettes and other nicotine-based products are likely to become more expensive.

The budget is also expected to propose a VAT of Tk500 per litre on domestically produced alcohol, which could lead to higher retail prices for alcoholic beverages.

Import duties on cashew nuts may be increased from 5% to 25%, potentially raising prices in the local market. In addition, a 15% VAT could be imposed on high-value imported frozen fish, making such products costlier for consumers.

The government is also considering increasing taxes and VAT at the production stage of mild steel (MS) rods and related products by around 10%. Industry observers say this could increase costs in the construction sector.

Furthermore, imported cosmetics, luxury items, premium food products and 10 newly specified imported goods may face a 20% VAT at the import stage, which is expected to result in higher market prices.