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Dhaka, June 2, 2025: The proposed budget for the 2025-26 fiscal year includes measures to increase the prices of tobacco products, including cigarettes, zarda, and gul. On Monday (June 2), Finance Adviser Dr. Salehuddin Ahmed presented a Tk 7,89,999 crore budget in the National Parliament.
The budget proposes a 25% customs duty on tobacco seed imports and an increase in supplementary duties on certain raw materials used in cigarette production, leading to higher prices for these products.
The budget highlights that cigarettes, zarda, and gul are harmful to public health. To discourage tobacco cultivation, a new HS code will be created for tobacco seeds, with a proposed 25% customs duty on their import. Additionally, a 100% supplementary duty has been set for paper used in cigarette production for manufacturing companies, while commercial importers may face a 350% supplementary duty. These measures follow recommendations from an investigation committee aimed at curbing tax evasion and discouraging commercial imports of tobacco-related raw materials. No supplementary duty will be imposed on acetate tow and acetate filter rods for manufacturing companies.
The budget sets a revenue collection target of Tk 4,99,000 crore, with a deficit of Tk 2,26,000 crore, equivalent to 3.62% of GDP. The government plans to finance this deficit through foreign loans, bank loans, and savings certificates.
This is the first budget of the interim government, which includes significant steps such as increasing duties on tobacco products to protect public health and boost revenue.
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