Cigarette prices are set to go up following an increase in supplementary duty and value-added tax (VAT) announced in Bangladesh’s national budget for the 2024-25 fiscal year, which was presented today, 6 June, 2024, at the National Parliament.
Finance Minister Mr. Abul Hassan Mahmood Ali unveiled plans to increase the supplementary duty on tobacco-containing cigarettes from 65% to 66%, as specified in the Act’s second schedule.
Additionally, he proposed raising the VAT on locally manufactured cigarette paper and bidi paper from 7.5% to 15%, aiming to further discourage cigarette production and use.
The minister announced that the price of low-slab 10-stick packs of cigarettes will increase to BDT 50 or higher, with a supplementary duty of 60%. Moreover, the price of medium-slab 10-stick packs will rise to BDT 70 or higher, high-slab packs to BDT 120 or higher, and premium-slab packs to BDT 160 or higher, with the supplementary duty rate for these three slabs set at 65.5%.
