Interim govt proposes hiking cigarette taxes to 5% on turnover, 300% on paper.
The interim government of Bangladesh has suggested increasing the advance tax on the turnover of cigarette manufacturers from the existing 3% to 5%, taking into account their profit margins.
Additionally, the Finance Adviser proposed raising the supplementary duty on cigarette paper from 150% to 300%.
As a result, the production cost of cigarettes is expected to go up.
This proposal was announced by Finance Adviser Salehuddin Ahmed in the budget for the 2025-26 fiscal year on 2 June 2025.
