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Tag: Bangladesh

  • 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.

  • Clashing Protests On Both Sides of Bangladesh’s Tobacco Tax Debate

    Clashing Protests On Both Sides of Bangladesh’s Tobacco Tax Debate

    Civil society groups in Bangladesh formed a human chain and called for higher tobacco taxes and pricing reforms ahead of the 2026–27 national budget at a protest in Tangail today (May 4). Organizers, including the Development Organization of the Rural Poor (DORP), urged the government to merge lower cigarette price tiers and raise minimum prices, proposing Tk100 ($0.81) per 10-stick pack for the lowest tier and a uniform 67% supplementary duty alongside a specific tax of Tk4 ($0.03) per pack. Speakers said low and mid-priced cigarettes account for nearly 90% of sales, contributing to accessibility and rising use, particularly among youth.

    Participants also highlighted the broader public health and economic impact, noting that tobacco use prevalence in Bangladesh stands at 35.3%, and that tobacco-related costs reached more than double industry revenue, and called for stronger pricing policies and alternative employment options for bidi workers as part of broader tobacco control efforts.

    Concurrently, bidi workers called for higher wages and the removal of taxes on the sector during a May Day rally organized by the Bangladesh Bidi Sramik Federation in front of the National Press Club. Workers demanded the withdrawal of taxes on the bidi industry, the elimination of advance income tax on bidis and cigarettes, improved wages, ration support, and action against counterfeit products. Union representatives also raised concerns about industry conditions and alleged financial outflows by multinational companies, while emphasizing the need for policy changes to support workers in the bidi sector.

  • Bangladesh Battles with Illicit Tobacco, Enforcement

    Bangladesh Battles with Illicit Tobacco, Enforcement

    Authorities in Bangladesh are facing renewed scrutiny over the enforcement of tobacco-related regulations, as a legal petition seeks updates on action taken against illegal shisha lounges in Dhaka. The filing, submitted to the Dhaka Metropolitan Police, requests details on raids, arrests, and compliance with a High Court directive issued in March mandating the closure of unauthorized lounges, amid claims that some establishments in areas like Banani and Gulshan remain operational.

    At the same time, enforcement efforts continue elsewhere, with officials in Kushtia destroying illegal tobacco products worth approximately Tk 2.5 crore ($225,000), including nearly 36 million sticks and units of cigarettes, bidis, and other items seized through anti-smuggling operations.

  • Advocates Call to Merge Bangladesh’s Multi-Tier Cig Structure

    Advocates Call to Merge Bangladesh’s Multi-Tier Cig Structure

    At a workshop hosted by the National Heart Foundation of Bangladesh today (April 9), journalists and public health advocates called for setting the minimum retail price of a 10-stick cigarette pack at Tk100 ($0.82) in the FY2026–27 budget by merging the low and medium tax tiers and introducing a uniform Tk4 (3 cents) specific tax per pack.

    A keynote by Dr. Shafiun Nahin Shimul of the University of Dhaka said Bangladesh’s 35.3% tobacco use prevalence leads to nearly 200,000 premature deaths annually and an economic cost of Tk870 billion ($7.1 billion), more than double sector revenue. Speakers, including representatives from the National Tobacco Control Cell and health researchers, argued the current multi-tier tax structure enables down-trading to cheaper brands and said higher prices could reduce youth initiation, encourage cessation, and raise government revenue.

  • Tobacco Farming Increase Impacting Fish in Bangladesh

    Tobacco Farming Increase Impacting Fish in Bangladesh

    Tobacco cultivation is rapidly expanding across the char lands of the Teesta River in northern Bangladesh, raising alarm among environmental and fisheries officials who warn that chemical runoff is polluting the river and damaging aquatic life. In Lalmonirhat District, more than 9,000 hectares were planted with tobacco last year, according to the Department of Agricultural Extension, displacing traditional food crops as farmers are drawn by free inputs, advanced cash, and guaranteed purchases from tobacco companies.

    Experts and local fishermen say heavy fertilizer and pesticide use is washing into the river during rains, harming fish breeding and biodiversity, while officials acknowledge difficulties curbing the shift as growers prioritize tobacco’s higher and more predictable returns over environmental concerns.