A range of everyday products, from mid-range passenger cars and cigarettes to washing machines and imported paper, are likely to become more expensive if Finance Minister Amir Khosru Mahmud Chowdhury's proposed budget for fiscal year 2026-27, presented in parliament on Thursday, is passed into law.

In a bid to curb the use of fossil fuel-powered vehicles and promote electric alternatives, the minister proposed raising the overall tax burden on imported internal combustion (IC) engine cars with 1200 to 1600cc capacity from the existing 132.36 percent to 155.88 percent, a significant jump that industry insiders say will push up showroom prices for popular mid-range models.

Household washing machines will also face a new 20 percent supplementary duty under the proposal, a measure aimed at protecting domestic manufacturers.

Similarly, a fresh 20 percent regulatory duty on imported gypsum boards and sheets is expected to raise construction and interior fitment costs.

Smokers will face a steeper bill as well. The proposed budget sets new minimum retail prices for cigarettes across all tiers, Tk 62 per 10 sticks at the lowest tier, Tk 92 at the medium tier, Tk 160 at the high tier and Tk 210 at the premium tier.

Printing and packaging costs could climb after the minister proposed raising import duties on greaseproof and glassine paper from 10 percent to 25 percent, along with a new 5 percent regulatory duty on both products.

Import duties on PVC and PET resin, key raw materials for plastic manufacturing, are also proposed to double from 5 percent to 10 percent, a move likely to ripple into a range of consumer goods.

The import duty on bicycle freewheel components is proposed to rise from 15 percent to 25 percent, with an additional 5 percent regulatory duty.

Importers of copper tubes would face a duty increase from 15 percent to 25 percent, with copper wire imports attracting a new 10 percent regulatory duty, changes that could affect electrical installation costs. 

Transformers up to 1 KVA capacity would see import duties jump from 10 percent to 25 percent, plus a new 5 percent regulatory duty.

Cold-rolled steel coils and sheets, widely used in manufacturing, would face an additional 10 percent regulatory duty to shield domestic producers, while maize starch imports would carry a higher duty of 25 percent, up from the current 15 percent.

The minister framed many of the increases as protective measures for nascent domestic industries, while the fossil fuel vehicle surcharge was explicitly tied to an environmental rationale.

The proposed budget sets total expenditure at Tk 9,38,000 crore, equivalent to 13.7 percent of GDP and Tk 1,48,000 crore higher than the previous fiscal's budget.