CONFERENCE PROCEEDING
Evaluating tobacco tax laws and policies in Bangladesh: Identifying provisions favourable to the tobacco industry
 
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1
National Board of Revenue, Ministry of Finace, Dhaka, Bangladesh
 
2
Bureau of Economic Research, University of Dhaka, Dhaka, Bangladesh
 
 
Publication date: 2025-06-23
 
 
Tob. Induc. Dis. 2025;23(Suppl 1):A720
 
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ABSTRACT
BACKGROUND: The tobacco tax structure in Bangladesh is highly complex. Tobacco companies manage to earn over five times the profit even when production doubles. Although the government announces measures to protect public health in the annual budget, certain weak terms and clauses in tobacco tax laws and SROs are exploited by tobacco companies. This allows them to maximize profits while evading taxes, undermining public health goals and fiscal accountability.
METHODS: The study was conducted using a qualitative approach. It involved analyzing tobacco tax-related laws, SROs, and various policies issued by the government from 2013 to 2024. Additionally, Key Informant Interviews (KIIs) were conducted with 10 NBR officials and tobacco control experts. The research was carried out between February and September 2024.
RESULTS: The term `and above’ in budget proposals has created a more tiers, allowing tobacco products to be sold at very low prices. There is a significant flaw in the cigarette stamp/banderole policy, where stamps/banderoles are supplied based on color. If lower-priced stamps/banderoles are used on higher-priced cigarette packets within the same tier, it becomes difficult to identify. Additionally, the provision requiring three assistant revenue officers to be stationed at cigarette factories 24/7 is problematic. With millions of cigarettes produced per minute, it is impossible to manually monitor production effectively. Moreover, although regulations mandate selling cigarettes at MRP, enforcement remains absent.
KIIs with NBR officials and tobacco control experts recommend urgent amendments to these laws, policies, and SROs. They believe these loopholes benefit tobacco companies while causing significant revenue loss for the government.
CONCLUSIONS: While every tobacco tax-related law, policy, and SRO is designed to increase revenue and protect public health, they are not sufficiently effective in practice. The specific terms and clauses in these laws that are exploited by tobacco companies to gain undue advantages and evade taxes must be urgently amended.
eISSN:1617-9625
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