The government risks losing around Tk 4,000 crore in revenue due to inconsistencies in cigarette pricing at the lower and mid-tier segments, according to a study by the Power and Participation Research Centre (PPRC).
The findings were revealed at a press conference on tobacco taxation and policy reforms held at the National Press Club on Monday.
Presenting the keynote paper, PPRC Senior Researcher Ehtesham Hasan said discrepancies between the government-set prices and actual retail rates are undermining revenue collection.
According to the study, the government has fixed the price of a 10-stick packet in the low tier at Tk 62. However, at the retail level, cigarettes are not selling at Tk 6.20 per stick; instead, consumers are paying around Tk 7.
A similar mismatch exists in the mid-tier segment, where buyers are paying about 80 paisa more per stick than the official price.
“These pricing gaps are creating a loophole that could result in an estimated revenue loss of around Tk 4,062 crore in the two segments,” the report said.
Speaking at the event, PPRC Executive Chairman Hossain Zillur Rahman criticised what he described as “paper-based decisions” that fail to reflect ground realities.
“Without aligning pricing decisions with market conditions, the government is effectively allowing revenue leakages. This cycle must be addressed,” he said.
Rahman also expressed concern over the government’s approach to e-cigarettes, warning that weak definitions and attempts to legitimise products such as pouches could expose young people to serious health risks.
To address the issue, PPRC recommended revising cigarette prices in the lower two tiers — proposing an increase from Tk 62 to Tk 70 for the low tier and from Tk 92 to Tk 100 for the mid tier.
The organisation argued that realistic price adjustments would help curb tax evasion, improve compliance and enhance revenue collection.
Other speakers at the event included Dhaka University faculty members Shafiun N. Shimul and SM Abdullah, who also emphasised the need for evidence-based reforms in tobacco taxation and stronger regulatory oversight.