A new study found that cigarette manufacturers in Bangladesh are evading an estimated Tk 5,182 crore ($480 million) in government revenue by manipulating retail prices and not adhering to the declared maximum retail price (MRP). The research, conducted by the University of Dhaka’s Bureau of Economic Research in collaboration with the Bangladesh Network for Tobacco Tax Policy, revealed that while manufacturers sell cigarettes to retailers at the printed MRP, retailers often sell them to consumers at significantly higher prices. This practice results in widespread sales above the official MRP, depriving the government of substantial tax revenue. The study, presented at a discussion at Dhaka Reporters Unity today (March 5), urged stronger regulatory oversight and stricter monitoring to curb price manipulation and improve tax compliance in the tobacco sector.
