BNTTP research assistant Ishrat Jahan Oishi said field data indicated tax evasion of Tk510.31 crore in the ultra-premium segment, Tk124.40 crore in the premium segment, Tk1925.58 crore in the mid-range segment, and Tk2621.24 crore in the lower segment.
Not raising cigarette prices potentially benefits cigarette companies more than the poor. Photo: TBS
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Not raising cigarette prices potentially benefits cigarette companies more than the poor. Photo: TBS
A recent study shows that tobacco companies in Bangladesh are evading taxes worth Tk5182 crore in the current fiscal 2025 by selling products above maximum retail prices, said a press release.
The findings were presented at a discussion titled “Tobacco company pricing manipulation and curbing tax evasion” today (5 March), at the Shafiqul Kabir Auditorium of the Dhaka Reporters’ Unity.
The event was jointly organised by the Economic Research Bureau of the University of Dhaka and the Bangladesh Network for Tobacco Tax Policy (BNTTP).
BNTTP research assistant Ishrat Jahan Oishi said field data indicated tax evasion of Tk510.31 crore in the ultra-premium segment, Tk124.40 crore in the premium segment, Tk1925.58 crore in the mid-range segment, and Tk2621.24 crore in the lower segment.
According to the press release, the data was collected from 48 retail outlets across 12 cities, including divisional cities and two district towns from Dhaka, Barishal, Khulna, and Mymensingh divisions. The outlets were public retail points as defined under the Smoking and Tobacco Products Usage (Control) Act.
The study recommended ensuring tobacco products are sold at maximum retail prices, penalising violators including past illegal businesses, implementing digital systems for tax collection and market monitoring, banning retail stick sales, reducing multiple pricing tiers to a single level, replacing ad valorem taxation with specific taxation to increase revenue and reduce tobacco use, and withdrawing government stakes in tobacco companies while exploring alternative revenue sources.
Experts at the event noted that tax evasion through sales above the MRP is equivalent to the budgets of five medical universities, including Bangladesh Medical University, and could fund free cardiac treatment nationwide.
They also said that retail stick sales contribute to tax evasion and make tobacco products more accessible to young people, reducing exposure to health warnings.
Officials from anti-tobacco organisations and journalists attended the discussion and participated in a question-and-answer session on the study findings.
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