Bangladesh’s illicit tobacco trade has surged sharply, with illegal cigarettes now making up 13.1% of the market, according to a new study by Insight Metrics. The report estimates more than 832 million illicit sticks enter circulation each month, a 31% increase from last year, dominated by “Illicit Whites” with fake or reused tax stamps, alongside smuggled foreign brands such as Oris, Mond, and Esse.
The government’s annual revenue loss, officially reported at ৳20 billion ($164 million), is likely far higher according to critics as illegal operators bypass cigarette import duties of nearly 600%. Dhaka and Chattogram are identified as key hotspots, with Oris alone moving an estimated 50 million sticks per month. Despite the seizure of over 610 million illicit cigarettes in 16 months, the study suggests enforcement captures only a fraction of the trade.
Experts warn that steep taxes and price hikes on legal products are driving smokers toward cheaper, unregulated cigarettes. They stress that without coordinated action between government and industry, the booming black market will continue to undermine revenue collection, weaken regulation, and fuel long-term public health risks.
