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Tag: Bangladesh

  • 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.”

  • Bangladesh to Ban E-cigarette Imports

    Bangladesh to Ban E-cigarette Imports

    Bangladesh will ban the import of e-cigarettes and related products, reports bdnews24.

     According to a statement issued by the cabinet division, the health services division proposed to take urgent measures to ban the import of all products tied to the electronic nicotine delivery systems or e-cigarettes “to protect public health and keep future generations safe.”

     After the discussion, it was decided that e-cigarettes will be included in the list of banned products in the import policy order of the ministry of commerce.

  • Tobacco Firms Object to New Tobacco Rules

    Tobacco Firms Object to New Tobacco Rules

    Image: Bilal Ulker

    Tobacco companies have objected to reforms to Bangladesh’s tobacco law proposed by the Ministry of Health and Family Welfare, reports BDNews24.

    In a letter addressed to the law and finance ministries, BAT and Japan Tobacco outlined their reservations and stressed the possibility of loss of government revenue due to the proposed revisions.

    However, according to the National Board of Revenue, tobacco revenues rose by 17.97 percent in fiscal 2005–2006 and 37.52 percent in fiscal 2006–2007 after the Smoking and Using of Tobacco Products (Control) Act passed in 2005.

    Following a 2013 amendment, tobacco revenues rose by 25.51 percent in the following fiscal years.

    A.B.M. Zubair, executive director of the anti-smoking group PROGGA, urged officials to ignore the tobacco companies’ objections. “The health ministry’s initiative to strengthen the existing tobacco control law aims at protecting the nonsmokers from secondhand smoke and shielding the youth from tobacco’s harmful effects,” he was quoted as saying.

    “Therefore, the draft amendment must be passed immediately, undeterred by the ill tactics of the tobacco companies.”

  • ‘Tobacco Too Cheap’

    ‘Tobacco Too Cheap’

    Photo: RODWORKS

    The tobacco tax proposed in Bangladesh’s 2024–2025 budget will make tobacco products cheaper and more affordable, according to critics.

    According to the Daily Sun, health groups believe the proposal will encourage youth to use tobacco products, leading to an increase in tobacco-related deaths and illnesses. “Consequently, government expenditure on public health will rise,” the PROGGA and ATMA health groups wrote in a statement. “The proposed budget will also result in the government losing the opportunity to earn an additional BDT10,000 crore [850.44 million] in revenues.”

    The statement notes that the retail price increase is minimal. “This means the hike per stick is only BDT0.50 (11.11 percent). The supplementary duty has been raised by 2 percent from the existing 58 percent to 60 percent.”

    “It should be noted that, very recently, the third report of Tobacconomics Cigarette Tax Scorecard has revealed a grim picture of the affordability of cigarettes in Bangladesh. Bangladesh scored 1.13 out of 5. The country’s score in the previous report was 2.38,” the statement said.

    “The retail price as well as the [supplementary duty] imposed on the low-tier cigarettes, which holds 75 percent of cigarette market share, has seen a very negligible change. We demand that the government set the retail price at least BDT60 and [supplementary duty] 63 percent so that it reduces the affordability of cigarettes, safeguards the youth and increases the revenue of the government manifold,” said PROGGA Executive Director ABM Zubair.

  • Yields Up in Bangladesh

    Yields Up in Bangladesh

    Photo: Tobacco Reporter archive

    Tobacco yields per hectare in Bangladesh have increased more than 20 percent over the past five years thanks to improved agricultural practices, reports The Daily Star.

    In 2018–2019, growers harvested an average of 2.04 tons per hectare. By the 2022–2023 season, the figure has increased to 2.46 tons per hectare, according to the Department of Agricultural Extension (DAE). In 2009–2010, per-hectare production was only 1.41 tons, according to World Bank data, which means per-hectare tobacco production has gone up by about 73 percent in 14 years.

    The gain has been achieved by the introduction of high-yielding varieties and the application of chemical fertilizers and pesticides, according to experts.

    Tobacco is a major cash crop in Bangladesh, the world’s 12th largest tobacco grower as of 2020, according to the University of Bath. In 2022–2023, the country grew 65,227 tons of tobacco on 26,475 hectares, representing roughly 1 percent of the total arable land in the country, DAE data show.

    The domestic tobacco industry generated more than BDT325.02 billion ($2.77 billion) in revenue from cigarette sales in the most recent fiscal year, an 8 percent increase from the previous year, according to NBR data. Bangladesh also exports a significant volume of unmanufactured tobacco. In 2022, Euromonitor International estimated the Bangladeshi tobacco market to be worth nearly BDT420 billion.

    According to a study by the Policy Research Institute of Bangladesh, tobacco farmers earn around 30 percent more than nontobacco farmers. The return from tobacco is about 18.6 percent higher than that from rice and about 33 percent higher than that from jute.

    Critics blame tobacco production for its impact on soil, water and air. According to the World Health Organization, each cigarette emits nearly 14 grams of CO2 over its life cycle. Producing 300 cigarettes requires about one tree for curing leaf and making cigarette papers. In the case of Bangladesh, tobacco farming accounts for over 30 percent of annual deforestation, according to a study by PATH Canada.