ঢাকামঙ্গলবার , ২৬ মে ২০২৬
In a significant revenue evasion incident, tobacco companies in Bangladesh have been selling old cigarettes at new prices, resulting in an estimated loss of BDT 2,963 crores over a 92-day period. Despite clear regulations from the National Board of Revenue (NBR) requiring old cigarette stock to be sold with updated price stickers, retailers across 16 cities have been selling cigarettes at prices higher than the maximum retail price (MRP) printed on the packets.
The violation occurred from June 6 to September 6, 2024, with prices of premium, high-tier, mid-tier, and low-tier cigarettes being raised multiple times, further inflating the government’s revenue loss.
Every year, with the announcement of the national budget, the NBR issues an SRO regarding the sale of old cigarettes. The SRO states: “Cigarette packets from previous stock or production must be sold with new price stickers/seals attached.” However, for decades in Bangladesh, old cigarettes have been sold at new prices without any updated price seals or stickers on the packets. Additionally, all types of cigarettes are sold at prices higher than the MRP printed on the packets. The price of single stick cigarette is also determined by the tobacco companies themselves.
We have collected data from 160 retail outlets across 16 cities/towns, including 8 divisional cities, and one additional district town from each division.
Although the national budget was announced on June 6, 2024, old cigarette stocks were sold at new prices until September 6, 2024. During this period, tobacco companies violated regulations by not only selling old cigarettes at new prices but also increasing the prices of these cigarettes multiple times. For example, premium-tier cigarettes priced at BDT 15.5 and BDT 16 per stick were sold at BDT 18 and BDT 20, respectively. High-tier cigarettes priced at BDT 11.8 were sold at BDT 13 per stick. Mid-tier cigarettes priced at BDT 7 and BDT 6.7 were sold at BDT 8, while those priced at BDT 8.4 were sold at BDT 10 per stick. Low-tier cigarettes, originally priced at BDT 4.5 per stick, were sold at BDT 6. As a consequence, the government incurred an estimated revenue loss of BDT 2,963 crores over a 92-day period.
When asked about the issue, NBR Chairman Md. Abu Rahman Khan FCMA said the National Board of Revenue (NBR) sets the prices and collects revenue accordingly. “However, ensuring that cigarettes are sold at the Maximum Retail Price (MRP) in the market is not the NBR’s responsibility,” he said. “Even so, necessary instructions will be given to the relevant authorities to ensure that tobacco companies operate within the rules,” he added.
British American Tobacco Bangladesh (BATB) controls 82 percent of Bangladesh’s cigarette market. The company did not respond to a request for comment.
Mohammad Alim Akhtar Khan, Director General of the Directorate of National Consumer Rights Protection, said, “We are working to protect consumer rights. Tobacco companies will be monitored to ensure that they operate legally and do not violate consumer rights.”
Commenting on the issue, Saifuddin Ahmed, Coordinator of the Bangladesh Anti-Tobacco Alliance (BATA), said, “Multinational tobacco companies are operating illegally in Bangladesh. While all other products in the country are sold at the Maximum Retail Price (MRP), cigarettes are not. Although it is the responsibility of the NBR and the Directorate of National Consumer Rights Protection to regulate this, they are failing to do so. In fact, there is a lack of accountability within these institutions. The government should take immediate action.”
