TobaccoReporter logo

Tag: Bangladesh

  • Bangladesh Pushes for Tobacco-Free Generation

    Bangladesh Pushes for Tobacco-Free Generation

    Tobacco industry stakeholders are closely monitoring calls from Bangladeshi experts and advocacy groups to amend the country’s tobacco control law with the stated goal of creating a “tobacco-free generation.” While public health advocates link tobacco use to rising rates of non-communicable diseases and urge stricter restrictions, the industry cautions that sweeping amendments could have wide-ranging economic and social impacts. Bangladesh’s tobacco sector supports millions of livelihoods, from farmers to small retailers, and contributes significantly to government revenue through taxes and export earnings. Industry representatives stress that any legal reforms must balance health objectives with the realities of employment, trade, and fiscal stability.

    From the industry’s perspective, an outright tightening of laws—such as bans on e-cigarettes and vaping—risks pushing consumers toward illicit markets, undermining both health and tax collection goals. The sector emphasizes the importance of pragmatic regulation, transparency, and meaningful dialogue between policymakers, public health groups, and industry stakeholders.

  • Bangladesh’s Illicit Cigarette Market Jumps 31%

    Bangladesh’s Illicit Cigarette Market Jumps 31%

    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.

  • Bangladesh: Couple Jailed for Fake Bidi Band-Rolls

    Bangladesh: Couple Jailed for Fake Bidi Band-Rolls

    A court in Rangpur, Bangladesh, on Wednesday (August 27), sentenced a couple to 14 years in prison for possessing counterfeit bidi band-rolls, a key tax stamp for the country’s cheap cigarette market. The 28-year-old man and his 23-year-old wife were arrested in January 2021 with a large haul of fake rolls. Judge Md Moshiur Rahman Khan also fined each Tk 10,000 ($7,200), with two months’ additional jail if unpaid.

    Authorities said the case highlights ongoing enforcement against counterfeit tobacco products, which undermine government revenue and fuel the illicit trade.

  • Bangladesh Customs Busts Cigarette Paper Smuggling Racket

    Bangladesh Customs Busts Cigarette Paper Smuggling Racket

    Customs officials in Bangladesh seized two consignments of undeclared cigarette paper falsely labeled as straw paper and paper ribbon, exposing a racket that could cost the government hundreds of crores in lost revenue. Lab tests by BUET, Dhaka University, and Khulna University of Engineering and Technology confirmed the shipments contained cigarette paper, not the reported goods.

    Officials said Dhaka-based RM Enterprise and Smart Move attempted to clear the goods despite laboratory findings, allegedly lobbying senior revenue officials. If released, the consignments would have deprived the state of Tk 1.7 crore ($139,000) in duties and up to Tk 135 crore ($11.1 million) in VAT from untaxed cigarettes.

    Records show RM Enterprise previously imported 489 tons of raw materials under suspicious declarations, with potential tax losses estimated at Tk 4,000 crore ($329 million). Both firms were found to be operating through non-existent or front addresses.

    Customs officials have blocked the release of the seized shipments and vowed further investigation into past imports.

  • BAT Bangladesh Forced to Relocate Headquarters

    BAT Bangladesh Forced to Relocate Headquarters

    British American Tobacco (BAT) Bangladesh will move its registered office from Mohakhali to Ashulia by mid-July 2025, following a Supreme Court ruling that rejected its appeal to extend the lease on its Mohakhali premises. The company must vacate the site it has leased from the Dhaka Cantonment Board since 1964.

    The relocation also involves shutting down BAT’s Dhaka factory, though operations will continue at its Savar, Manikganj, and Kushtia facilities. A spokesperson acknowledged potential disruption but emphasized preparations were in place to minimize the impact and protect shareholder interests. BAT Bangladesh earned Tk9,597 crore in Q1 2025.

    The company had been leasing the factory on 30-year terms, with a maximum duration of 90 years. BAT applied for the final renewal, but was denied by the board, which initiated the legal proceedings. Environmental groups had long called for the factory’s relocation, citing pollution concerns.

  • Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s interim government’s proposed national budget for Fiscal Year 2025-26 (July 2025-June 2026) has drawn criticism from anti-tobacco activists for keeping cigarette prices and taxes unchanged across all tiers. Finance Adviser Dr. Salehuddin Ahmed presented the proposed budget, but activists suggest the decision will deprive the government of at least Tk20,000 crore ($2.4 billion) in additional revenue while making cigarettes more accessible to young smokers.

    Activists urge the government to increase cigarette prices across all tiers, particularly by merging the low and medium tiers—which account for 80% of the market—into a single category with a minimum retail price (MRP) of Tk90 ($1.08) for 10 sticks.

    The budget also leaves bidi prices unchanged for the sixth consecutive time, with supplementary duty remaining static for the 10th straight year. Similarly, taxes on smokeless tobacco products such as jarda and gul remain unaltered, sparking concerns among health advocates.

    While the budget raises the advance tax on cigarette manufacturers from 3% to 5% and increases supplementary duty on imported cigarette paper from 150% to 300%, activists argue these measures fall short of ensuring meaningful public health protection.

  • Bangladesh: Anti-Tobacco Advocates Want More Taxes

    Bangladesh: Anti-Tobacco Advocates Want More Taxes

    Anti-tobacco organizations in Bangladesh said mid-year tobacco tax additions advanced public health protections and created the potential for additional government revenue. Though not planned in the original budget, the adjustments raised retail prices of cigarettes on a tiered scale between 8% and 20%, and imposed a uniform supplementary duty rate of 67% on all tiers.

    Abdullah Nadvi, research director of Unnayan Shamannay, called for the government to not only maintain the taxation but to bolster it 2025-26 fiscal budget, saying the government could collect an additional 40% in tobacco revenue without changing the duty rate.

    Dr. Mahfuz Kabir, research director at BIIISS, said that effective taxation could increase government revenue from cigarettes by 11% to 28%. He warned that failing to adjust cigarette prices with inflation has led to a steady rise in sales in recent years.

  • Bangladesh Says Smoking Rates Not Declining Fast Enough

    Bangladesh Says Smoking Rates Not Declining Fast Enough

    Health officials in Bangladesh said the country is unlikely to meet its smoking reduction goal of 40% by 2030, as suggested by the World Health Organization. According to the Bangladesh Medical University (BMU), smoking in the country declined 13% between 2009 and 2022, only a third of its ultimate goal.

    M Mostafa Zaman, executive editor of BMU Journal, said overall tobacco use dropped from 54% to 47% over that time, but that 22% of the population still smokes cigarettes and 31% use smokeless tobacco. Between 2017 and 2022, the use of e-cigarettes increased from 3.6% to 14.6%.

    Shafiun Nahin Shimul, a professor at the Institute of Health Economics at Dhaka University, however, said the data set being used is extremely limited, making it difficult to draw firm conclusions from either the figures or the study’s methodology. He said that while the analysis suggests that tobacco consumption has fallen, the National Board of Revenue statistics indicate cigarette sales are on the rise as the use of bidi (a kind of cheap cigarette) has decreased compared to cigarettes.

  • Bangladesh Officials Meet to Stop Tobacco Use, Tax Evasion 

    Bangladesh Officials Meet to Stop Tobacco Use, Tax Evasion 

    Yesterday (March 18), National Board of Revenue (NBR) chairman Md Abdur Rahman Khan said Bangladesh was considering the introduction of a QR code system band-roll for the tobacco sector to prevent tax evasion. Speaking at a pre-budget meeting with the Anti-Tobacco Media Alliance (ATMA), he said that high taxes on tobacco products have created a huge amount of illicit cigarettes entering the country, thus depriving the NBR of due revenue.

    The chairman said some bidi companies use counterfeit band-rolls to avoid paying taxes in the national exchequer.

    “Even they bring those band-rolls from abroad after printing in there,” he said. The NBR chairman put emphasis on establishing a cashless society to stop tax evasion.

    The ATMA argued cigarette prices in the country were too low, and that having a four-tier price system (low, medium, high, and premium) has rendered the tobacco price and tax measures less effective. It proposed merging the low and medium categories.

  • Foreign Company Investing $8.2 Million for Tobacco Processing Machinery in Bangladesh

    Foreign Company Investing $8.2 Million for Tobacco Processing Machinery in Bangladesh

    Lee’s Tobacco Machinery Company Limited signed an agreement yesterday (February 3) to invest $8.32 million into the Bangladesh Export Processing Zones Authority (Bepza) to manufacture tobacco processing machinery. According to a press release, the investment from the UAE- and Singapore-owned company is expected to create 92 jobs for Bangladeshi nationals.

    Li Meng, chairman of Lee’s Tobacco Machinery, emphasized his commitment to transferring technical expertise to local workers, thereby building a skilled workforce in machinery manufacturing.

    “This milestone underscores our commitment to diversifying export-oriented industries,” Major General Abul Kalam Mohammad Ziaur Rahman, executive chairman of Bepza said. “We anticipate further investments in machinery production, which will contribute to the broader industrial landscape of Bangladesh.”