Bangladesh Cabinet Approves Cigarette Price Revision and Solar Tax Exemptions
The government has approved the revision of low-tier cigarette prices alongside tax exemptions for solar equipment imports. Additionally, a bilateral investment agreement with Hong Kong has been cleared.
The government of Bangladesh has officially approved the revision of low-tier cigarette prices through adjustments under the Value Added Tax and Supplementary Duty Act, 2012. Following the latest administrative decisions, the minimum price for a 10-stick packet of low-tier cigarettes has been raised to 65 taka. This adjustment marks a change from the previous pricing structure that was established under the 2026-27 budget, where comparable low-tier cigarette packs were priced at 62 taka.
While the low-tier cigarette prices have experienced an upward revision, other categories of tobacco products remain unchanged. The pricing for medium, high, and premium tiers has been maintained at their existing levels. Specifically, the price for a 10-stick packet of medium-tier cigarettes is set at 92 taka, high-tier cigarettes are priced at 160 taka, and premium-tier cigarettes remain at 210 taka and above.
In addition to tobacco price adjustments, the cabinet has approved a proposal to grant additional tariff and tax exemptions for the import of equipment utilized in renewable solar power generation. Under this newly approved measure, supplementary duties and customs charges on the importation of necessary machinery and equipment for solar power production have been significantly reduced, setting the additional customs duty at just 1 percent.
The newly approved tax exemptions and concessions for renewable energy infrastructure imports have been granted a specific operational timeframe. According to the official directives approved by the cabinet, the additional customs duty exemption and related tax relief for solar power equipment imports will remain effective for a duration of 180 days.
Furthermore, the government has advanced its international economic partnerships by approving a formal bilateral investment treaty. The cabinet cleared a proposal for the signing of a 10-year bilateral investment protection and expansion agreement between Bangladesh and Hong Kong, aimed at fostering closer economic cooperation between the two jurisdictions.
