Cigarette price hike

The Cabinet has approved the proposal to raise the maximum retail price of lower-tier cigarettes (per 10 sticks) from Tk 62 to Tk 65. This approval was given at the Cabinet meeting held under the chairmanship of Prime Minister Tarique Rahman in the Cabinet room of the National Parliament Building on Monday (September 7). This information was given in a press release of the Cabinet Division after the meeting. The Internal Resources Division presented the related proposal in the Cabinet. Under the 'Value Added Tax and Supplementary Duty Act, 2012', proposals were made to change the maximum retail price of lower-tier cigarettes as well as to amend two notifications related to cigarette price fixation and the use of stamps and banderoles. Through this amendment the maximum retail price of lower-tier cigarettes (per 10 sticks) will be fixed as 'Tk 65 and above' instead of 'Tk 62 and above'. The press release of the Cabinet Division has stated that as a result of the re-fixation of the price of lower-tier cigarettes, illegal trade in this sector will decrease and at the same time the government's revenue shortfall will also be reduced.