Published: 09:51 AM, 26 April 2026
Cigarette taxes to remain unchanged, prices may rise: NBR Chairman
The National Board of Revenue (NBR) has indicated that tax rates on tobacco products will remain unchanged in the upcoming national budget. However, cigarette prices may increase as the tax collection system is set to be fully automated, said NBR Chairman Md. Abdur Rahman Khan during a pre-budget discussion.
The discussion was held at the NBR headquarters in Agargaon, where representatives from the Metropolitan Chamber of Commerce and Industry (MCCI) and various industry sectors participated.
Representatives from the tobacco sector also took part in the meeting, emphasizing that a stable and predictable tax policy is essential for business operations and long-term planning.
Participants stated that the government's initiative to automate tax administration would improve transparency and efficiency in the revenue system, while also ensuring a level playing field across industries. They further expressed hope that such measures would help reduce tax evasion and strengthen fair competition in the market.
The discussion also highlighted that expanding the tax base, rather than increasing tax rates, could be a more effective approach to revenue growth. Although there are a large number of Tax Identification Number (TIN) holders in the country, a significant portion of them do not file tax returns regularly, which limits overall revenue collection.
Business representatives also stressed the need to simplify the tax structure, reform the VAT system, and ensure policy consistency. According to them, a stable, transparent, and modern tax framework would support sustainable industrial growth and help create a more investment-friendly environment.
