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Tag: Bangladesh

  • BAT Bangladesh Appoints Corporate Affairs Head

    BAT Bangladesh Appoints Corporate Affairs Head

    BAT Bangladesh PLC has appointed Momshad Ali Khan as head of corporate and regulatory affairs, effective Oct. 1, 2026. Khan has more than 20 years of experience in corporate affairs, government relations, regulatory strategy, stakeholder engagement, and strategic communications.

    Before joining BAT Bangladesh, Khan was director of public affairs, communications, and sustainability at Coca-Cola Bangladesh and previously served as head of corporate and fiscal affairs at JT International Bangladesh. He also spent more than a decade at Chevron Bangladesh.

  • Bangladesh Seizes 8.25 Tons of Tobacco-Like Materials

    Bangladesh Seizes 8.25 Tons of Tobacco-Like Materials

    Bangladesh customs officials seized about 17.5 tons of goods at Chattogram Port after finding discrepancies between the declared and actual contents of two consignments imported under the name of Authoy Enterprise. The shipment included tobacco or tobacco-like materials and scrap paper, according to the National Board of Revenue.

    The first consignment was declared as pan masala and zarda, or chewing tobacco, but contained 8,250.4 kilograms, or about 8.25 tons, of tobacco or tobacco-like material. Some materials appeared to be powdery substances resembling narcotics, though laboratory testing is required to determine their composition. The second consignment was declared as printed paper catalogues but contained 9,263 kilograms, or about 9.26 tons, of scrap paper.

    Authoy Enterprise’s proprietor told customs officials that he and the company were unaware of the imports and suspected their name and import information had been misused. Authorities are investigating the shipments and whether any offences were committed.

  • BAT Bangladesh Appoints New Managing Director

    BAT Bangladesh Appoints New Managing Director

    British American Tobacco Bangladesh appointed Kakhaber Benidze as managing director, effective May 1, 2026, succeeding Monisha Abraham. A BAT veteran since 2001, Benidze brings more than 25 years of FMCG experience, including senior leadership roles across marketing, supply chain and general management in markets spanning Europe, the Middle East, and the Caucasus. Most recently, he served as general manager of BAT Switzerland and the BAT Austria Cluster.

    BAT Bangladesh said Benidze’s experience in business transformation, portfolio development, and commercial growth positions him to lead the company’s next phase of expansion. Benidze said he aims to build on BAT Bangladesh’s 116-year presence in the country, strengthen business performance, and continue contributing to the national economy.

  • Bangladesh Banking on Technology to Fight Illicit Tobacco  

    Bangladesh Banking on Technology to Fight Illicit Tobacco  

    Bangladesh’s government unveiled a technology-driven strategy to combat illicit tobacco trade as part of its FY2026-27 budget, aiming to strengthen tax enforcement, protect government revenue, and support public health goals. Central to the plan is a comprehensive Track and Trace system that will use AI-enabled cameras, automated production counting devices, and QR or AR-coded tax stamps to monitor tobacco manufacturing and distribution in real time. Finance Minister Amir Khosru Mahmud Chowdhury said tobacco taxation remains a critical tool for both revenue generation and public health, with the new measures designed to create a more modern, transparent, and technology-based VAT system while reducing tax evasion across the tobacco supply chain.

    The proposal also includes a mobile app that allows the public to report illicit tobacco products directly to the National Board of Revenue, along with a whistleblower reward program to encourage reporting of smuggling and illegal sales. Additional measures include restricting cigarette and bidi paper imports to authorized manufacturers, imposing a 300% supplementary duty on cigarette filter materials and a 350% duty on nicotine granules and nicotine pouches, while raising minimum cigarette retail prices and setting maximum prices and excise duties for nicotine pouches and heated tobacco products. The government said the combined approach of digital monitoring, stronger enforcement, and higher tobacco taxes is intended to curb illicit trade, although estimates of Bangladesh’s illicit cigarette market vary widely, ranging from about 5.6% in an independent study to more than 18% according to industry estimates.

  • Bangladesh Risks $328M From Cigarette Pricing Structure

    Bangladesh Risks $328M From Cigarette Pricing Structure

    Bangladesh could forgo more than Tk 4,000 crore ($328 million) in annual tobacco tax revenue in fiscal year 2026-27 because cigarette prices set in the proposed budget do not reflect actual retail market prices, according to the Power and Participation Research Center (PPRC). The think tank estimates that the government will lose approximately Tk 4,062 crore ($333 million) in revenue because low- and medium-tier cigarettes are sold at prices higher than the official minimum retail prices used for tax calculations.

    Under the proposed budget, the minimum retail price is set at Tk 62 ($0.50) per 10 sticks for low-tier cigarettes and Tk 92 ($0.75) for medium-tier products, while retailers commonly sell individual sticks at prices that translate to pack values of Tk 70 and Tk 100 ($0.57 and $0.81), respectively. Based on sales of 6,118 crore low- and medium-tier cigarette sticks in FY25, PPRC argues that the untaxed gap between official and actual prices represents a significant missed revenue opportunity.

    The organization said total tobacco tax collections have continued to rise, reaching about Tk 45,000 crore ($3.7 billion) in FY26, but contended that a substantial portion of price increases is being retained by tobacco companies rather than captured by the government through taxation. PPRC called for tobacco tax policies that better reflect market realities to strengthen revenue collection and public health outcomes.

  • Bangladesh Health Advocates Criticize Tobacco Tax Measures

    Bangladesh Health Advocates Criticize Tobacco Tax Measures

    Public health advocates panned Bangladesh’s proposed FY2026-27 budget, saying it falls short of introducing tobacco tax reforms that would reduce consumption or significantly boost revenue. Speaking at a post-budget press conference organized by the Dhaka Ahsania Mission, critics said the small increase in low-tier cigarette prices and unchanged taxes on bidis, zarda, and gul would make tobacco products more affordable in real terms as inflation and incomes rise.

    Advocates noted that low-tier brands account for nearly 75% of the cigarette market and proposed merging the low and medium tiers, increasing prices, and introducing a specific supplementary duty. They estimate the measures could generate an additional Tk44 billion ($356 million) in revenue and prevent about 400,000 premature deaths over time.

    The group also warned that taxing nicotine pouches and heated tobacco products without banning them effectively legitimizes emerging nicotine products. Bangladesh reports having an adult tobacco-use rate exceeding 35%, with tobacco-related diseases causing nearly 200,000 deaths annually.

  • Bangladesh Criticized for Minor Tobacco Tax Increases

    Bangladesh Criticized for Minor Tobacco Tax Increases

    Anti-tobacco groups in Bangladesh criticized the proposed FY2026-27 national budget for failing to impose stronger tobacco tax increases while effectively legalizing nicotine pouches and heated tobacco products by bringing them into the tax framework. In a joint statement, the Bangladesh Anti-Tobacco Alliance and Bangladesh Network for Tobacco Tax Policy argued that the budget’s modest cigarette price increases — particularly a Tk2 ($0.016) rise for low-tier brands, which account for about 75% of sales — would do little to reduce affordability or consumption.

    The groups also expressed concern that prices for bidis, jarda, and gul remain unchanged, warning that the legalization of nicotine pouches and heated tobacco products, combined with limited tax measures on conventional tobacco, could undermine public health objectives and tobacco-control efforts in the country.

  • Bangladesh’s Bidi Prices Remain Unchanged for FY27

    Bangladesh’s Bidi Prices Remain Unchanged for FY27

    Bangladesh’s Finance Minister Amir Khosru Mahmud Chowdhury announced today (June 9), during a parliamentary question-and-answer session in the Jatiya Sangsad, that bidi prices and tax rates will remain unchanged in the FY27 national budget. The decision means there will be no increase in the retail price of bidis or adjustments to the existing tax structure, including the 15% VAT and 1% health development surcharge applied to the product.

    The announcement came in response to a parliamentary question on whether the government would raise taxes or retail prices on bidis through higher supplementary duties or revised pricing structures. The minister confirmed that the current framework will be maintained, keeping bidi taxation and pricing consistent with the previous fiscal year.

  • Bidi Workers Form Human-Chain Protest in Bangladesh

    Bidi Workers Form Human-Chain Protest in Bangladesh

    Bangladesh bidi workers staged a human chain protest in Pabna on May 24, opposing proposals to raise bidi prices and increase supplementary duty in the country’s 2026–27 national budget. Members of the Pabna District Bidi Workers Union objected to recommendations from Atma-Pragya and Ahsania Mission to increase bidi prices from Tk 18 to Tk 30 ($0.15 to $0.24) and raise supplementary duty from 30% to 50%.

    During the demonstration, workers presented a five-point demand that included maintaining current bidi tax rates, increasing working days for bidi workers, enforcing bandroll use only for licensed factories, raising prices on low-tier cigarette packs, and cracking down on counterfeit bidi production and sales. Leaders from the Bangladesh Bidi Workers Federation participated in the protest and warned that higher taxes could further pressure workers employed in the sector.

  • BATB Sales Choked by Taxes, Illicits

    BATB Sales Choked by Taxes, Illicits

    British American Tobacco Bangladesh reported a sharp downturn in first-quarter FY2025-26 performance as higher tobacco taxes, consumer downtrading, and rising competition from illicit cigarettes weighed heavily on sales. Domestic cigarette volumes fell 14% year-on-year, dragging gross revenue down 10.7% and net revenue down 21% as the effective tax burden climbed to 84.1%.

    Industry estimates suggest illicit cigarettes now capture up to 18% of the market, intensifying pressure on compliant manufacturers. While gross margin improved to 56% on lower cost of sales, operating expenses surged more than 40%, and operating cash outflow widened amid rising inventories and higher short-term borrowing. Non-core revenue streams offered little support, with cigarette exports remaining at zero for a third straight quarter and leaf export volumes falling sharply.