BACKGROUND: In Bangladesh, 22 million people (20%) use smokeless tobacco (SLT), but tax enforcement remains a low priority, leading to significant revenue loss. Tobacco tax increase is a globally recognized as effective for reducing consumption and boosting government revenue. Despite anti-tobacco activists advocating for higher SLT taxes, compliance is inconsistent. In the 2023–2024 fiscal year, the government raised SLT taxes, setting 10g of Zarda at BDT 45. This study examines the market-level impacts of these changes, evaluating the alignment between budgeted and real selling prices of Zarda products.
METHODS: This research employs a quantitative methodology, using primary data gathered through a semi-structured survey. Data gathering took place from June 2023 until January 2024 across eight divisional cities in Bangladesh. The collected data were analyzed using descriptive statistical tools to identify trends, patterns, and key insights related to the study objectives.
RESULTS: This study revealed that, 97% SLT products does not follow the ratio of budget declaration price whereas 10gm is 87% and 20gm is 93%. Eighteen different weights categories (5gm, 8gm, 9gm, 10gm, 12gm, 14gm, 15gm, 18gm, 20gm, 25gm, 30gm, 32gm, 40gm, 50gm, 52gm, 65gm, 70gm, & 100gm) packaging found in the market. 50gm packets SLT product is more available in the market but none of the company (0%) are selling products as per ratio of budget declaration price whereas selling lower than budget price ratio. 97% SLT Company did not increase price according to budget price.
CONCLUSIONS: Government losing huge amount revenue from SLT products due to sell Zarda below budget price. SLT market is unregulated that is why government should take necessary step to reduce tax evasion through effective monitoring and ban self-declaration tax system. SLT products are not using standard packaging model. The study recommends to introducing standard packaging for SLT products to collect more revenue and reduce tax evasion.