NBR raises low-tier cigarette prices after Tk3,000cr revenue shortfall

The National Board of Revenue (NBR) has raised the maximum retail price (MRP) of low-tier cigarettes from Tk62 to Tk65 per 10-stick pack, following a nearly Tk3,000 crore shortfall in cigarette revenue collection during the first two months of the current fiscal year.
The NBR disclosed the price increase in a notification issued on 15 September and published on its official website on Thursday.
The government currently collects around 83% of cigarette retail prices in various forms of tax.
The decision to raise the price of low-tier cigarettes was taken at a cabinet meeting chaired by Prime Minister Tarique Rahman on 1 September. At the meeting, the NBR said the adjustment would not increase the retail price paid by consumers.
However, questions remain over whether retail prices will actually remain unchanged after the revision of the MRP.
Industry sources said low-tier cigarettes are already being sold above the government-set MRP of Tk62, with 10-stick packs fetching as much as Tk70 in the market.
According to NBR data presented at the cabinet meeting, the country sold between 77 billion and 85 billion cigarettes annually from FY20 to FY24. Low-tier cigarettes accounted for around 60% to 64% of total cigarette sales during the period – roughly 75% to 79% of the country’s cigarette market.
The NBR said cigarette sales dropped to 62 billion sticks in FY25 after the government introduced the largest-ever increase in cigarette prices and tax rates on 9 January last year.