The proposed budget for FY 2026–27 includes plans to increase duties and taxes on several products to protect domestic industries, safeguard public health, and encourage the use of environmentally friendly alternatives. The import costs and market prices of these products may consequently rise.
Products facing a direct risk of price increases include cashew nuts, imported pangasius fillets, cigarettes, nicotine pouches, heated tobacco products, petrol- and diesel-powered vehicles with engine capacities ranging from 200cc to 1,600cc, imported washing machines, gypsum boards and sheets, PVC resin-based products, PET resin-based products, cold-rolled coils and sheets, copper wires and copper tubes, and polyester staple fibre, among others, according to the proposed budget.
Cashew Nuts
To protect domestic cultivation and processing industries, it has been proposed to increase the import duty on unprocessed cashew nuts from 1 percent to 25 percent and on processed cashew nuts from 5 percent to 25 percent. Prices in the import-dependent cashew market may consequently increase.
Imported Pangasius Fillets
To support the domestic fish-processing industry, a new supplementary duty of 20 percent has been proposed on imported pangasius fish fillets. This may lead to higher prices for pangasius products.
Cigarettes
The government has proposed increasing the minimum retail prices of cigarettes across all tiers. The proposed prices per pack of 10 sticks are BDT 62 for the low tier, BDT 92 for the medium tier, BDT 160 for the high tier, and BDT 210 for the premium tier. Consequently, cigarette prices are expected to rise.
Nicotine Pouches and Heated Tobacco Products
A supplementary duty of 40 percent at the retail level has been proposed on imported nicotine pouches. A 67 percent supplementary duty has also been proposed on heated tobacco products. Prices of both products are therefore likely to increase.
Petrol-, Octane-, and Diesel-Powered Vehicles
To reduce environmental pollution, the government has proposed increasing the total tax burden on internal combustion engine vehicles with engine capacities between 1,200cc and 1,600cc from 132.36 percent to 155.88 percent. This may result in higher vehicle prices.
Washing Machines
To protect local manufacturers, a new supplementary duty of 20 percent has been proposed on the import of all types of household washing machines. As a result, the prices of imported washing machines may increase.
Gypsum Boards and Gypsum Sheets
To protect domestic manufacturers, the proposed budget includes a 20 percent regulatory duty on the import of gypsum boards and gypsum sheets. Consequently, the prices of these products may increase.
Protection for the Transformer Industry
To provide stronger tariff protection to the locally established transformer industry producing transformers with capacities of up to 1 kVA, the government has proposed increasing the existing import duty on such transformers from 10 percent to 25 percent. A new 5 percent regulatory duty has also been proposed.
Imported Copper Tubes and Copper Wires
The import duty on copper tubes has been proposed to increase from 15 percent to 25 percent. A new 10 percent regulatory duty has also been proposed on the import of copper wires. Consequently, the prices of both products may rise.
Cold-Rolled Coils and Sheets
An additional 10 percent regulatory duty has been proposed on the import of cold-rolled coils and sheets. This may increase the market price of these products.
Plastic and Packaging Industry
The proposed budget seeks to increase the import duty on PVC resin from 5 percent to 10 percent. Similarly, the import duty on PET resin is proposed to rise from 5 percent to 10 percent.
Greaseproof Paper and Glassine Paper
The import duty on greaseproof paper has been proposed to increase from 10 percent to 25 percent, along with the imposition of an additional 5 percent regulatory duty. A similar measure has been proposed for glassine paper, with a 25 percent import duty and an additional 5 percent regulatory duty. The prices of both types of paper may consequently increase.
Imported Motors
To support the domestic motor manufacturing industry, the government has proposed imposing a 10 percent regulatory duty on the import of low-capacity DC motors rated at up to 1,200 watts.
Corn-Based Products
The import duty on maize starch, produced from corn kernels, has been proposed to increase from 15 percent to 25 percent. Since maize starch is widely used in the food, textile, pharmaceutical, and other industrial sectors, prices of related products may increase.
Polyester Staple Fibre
To protect import-substituting industries, a new 5 percent import duty has been proposed on polyester staple fibre imports.
Imported Bicycle Components
To safeguard the domestic bicycle industry, the government has proposed increasing the import duty on bicycle freewheels from 15 percent to 25 percent and imposing an additional 5 percent regulatory duty. Consequently, the cost of imported bicycle components may increase.