B Mirror Report: Cigarette prices may increase in the upcoming 2026–27 national budget as the government considers a new tax structure for tobacco products to boost revenue, officials said.

Chairman of the National Board of Revenue (NBR), Md Abdur Rahman Khan, indicated the possible price hike and tax reform during a pre-budget discussion held on Tuesday (March 31) at the NBR conference room. The meeting was organized with members of the Economic Reporters Forum (ERF).

He said tobacco prices in the country are lower compared to neighboring nations, creating scope for increasing revenue through price adjustments and a revised tax framework. “We will try to see whether a new structure can be introduced to enhance revenue,” he said, noting that the current multi-tier pricing system has already pushed tax rates to as high as 83 percent.

The NBR chief also highlighted widespread tax evasion in bidi and smokeless tobacco products, calling for cooperation to address the issue. He acknowledged the sensitivity surrounding bidi sector reforms due to the large number of workers involved.

To curb smuggling and counterfeit products, the NBR plans to introduce modern technologies, including QR codes on cigarette packs for verification. Consumers will be able to scan these codes through an app to identify fake products and report them to authorities, with incentives offered for whistleblowers.

Khan added that the government is working on a “track and trace” mechanism to strengthen monitoring and reduce illicit trade. As part of stricter enforcement, seized counterfeit cigarettes will be publicly destroyed to raise awareness.

He emphasized that increasing prices and rationalizing the tax structure remain key priorities for the upcoming budget, aiming to significantly enhance government revenue from the tobacco sector.