“Higher cigarette prices are good for public health, or if tobacco companies charge more than the official price, it’s not a problem.” This notion is common among some tobacco control advocates who believe higher prices reduce consumption. On the surface, this seems positive, but in reality, it’s a serious misconception. Raising prices without addressing regulation can strengthen tobacco companies’ control, not reduce harm. Evidence of this has been seen over the past few years.

The National Board of Revenue (NBR) has increased cigarette prices primarily without raising the tax rate. This boosts government revenue but simultaneously increases tobacco company profits. For example, if a pack’s price increases by 10 Taka without changing the tax, the government receives 8.10 Taka, and the company gains 1.90 Taka—without any increase in production cost. This results in abnormal profit growth for tobacco companies, which can be used to influence policymakers, media, and enforcement authorities.

Between 2009 and 2018, BAT’s cigarette production doubled from 24 billion sticks to 51 billion, while net profit increased from 2 billion Taka to nearly 100 billion Taka. This growth is largely due to business-friendly tobacco tax policies.¹

Maximum Retail Price (MRP) Violations by Cigarette Companies

The sale price of tobacco products is regulated by NBR. Each product carries an MRP (Maximum Retail Price), and selling above this price is illegal. However, multinational tobacco companies consistently sell products to retailers at MRP but instruct them, through advertising or verbally, to charge higher prices to consumers. Unlike other consumer goods, cigarette companies often do not provide retailer commissions. This allows companies to extract millions of Taka daily from consumers illegally.

A 2022 study by the Bureau of Economic Research, Dhaka University, and market monitoring by Sushanta Singh from Ekattor TV showed that multinational companies charge roughly 1 Taka extra per stick on average.² This translates to 20 crore Taka daily, 600 crore monthly, and 7,300 crore annually—none of which goes to government revenue. Following this, in 2023, it became mandatory to print MRP on every pack.

Daily Profits Extracted from Consumers : In 2022–23, 80 billion sticks were produced. Charging on an averge 1 Taka extra per stick results in 22 crore Taka daily and 8,000 crore annually in extra profits. In 2023–24, production rose to 84.6 billion sticks, increasing daily illicit profit to 23 crore Taka and 8,460 crore annually-money that should have gone to the government.

Bangladesh’s Cigarette Market Share

• British American Tobacco (BAT): ~88% of Bangladesh’s cigarette market.
• Abul Khair Tobacco (Local): 7–8%.
• Japan Tobacco International (JTI): 5–6%.
• Other loacl companies: negligible share.

Cigarette Companies: MRP Violation and Consumer Deception

Premium Tier Cigarettes: Benson Cigarette MRP is 370 Taka but consumers are charged 400 Taka.

• Marlboro Cigarette MRP is 370 Taka but consumers are charged 400–420 Taka.
• Alchemy Cigarette MRP is 390 Taka but consumers are charged 450 Taka.

High Tier Cigarettes: Gold Leaf Cigarette MRP is 280 Taka but consumers are charged 300 Taka.

Mid-Tier Cigarettes: Lucky Strike Cigarette MRP is 216 Taka but consumers are charged 240 Taka.

• Star Cigarette MRP is 180 Taka but consumers are charged 200 Taka.
• Camel Cigarette MRP is 180 Taka but consumers are charged 200 Taka.
• Navy Cigarette MRP is 160 Taka but consumers are charged 180 Taka.
• Lakis Cigarette MRP is 176 Taka but consumers are charged 200 Taka.
• Maxim Cigarette MRP is 160 Taka but consumers are charged 200 Taka.
• Black Cigarette MRP is 160 Taka but consumers are charged 200 Taka.

Low-Tier Cigarettes:

• Derby Cigarette MRP is 144 Taka but consumers are charged 160 Taka.
• Pilot Cigarette MRP is 144 Taka but consumers are charged 160 Taka.
• Hollywood Cigarette MRP is 144 Taka but consumers are charged 160 Taka.
• Sheikh Cigarette MRP is 144 Taka but consumers are charged 160 Taka.
• Royals Cigarette MRP is 126 Taka but consumers are charged 140 Taka.
• LD Cigarette MRP is 120 Taka but consumers are charged 140 Taka.
• Black Diamond Cigarette MRP is 120 Taka but consumers are charged 140 Taka.
• Avon Cigarette MRP is 140 Taka but consumers are charged 160 Taka.
• Aries Slim Cigarette MRP is 130 Taka but consumers are charged 160 Taka.

Why Some Cigarettes Sell Below MRP

• Mesi Cigarette (Asian Tobacco) MRP is 120 Taka but consumers are charged 100 Taka.
• Deshi Gold Cigarette (Vargo Tobacco) MRP is 120 Taka but consumers are charged 100 Taka.

These brands are sold below MRP to capture market share. Retailers buy at 85 Taka per pack and sell at 100 Taka, earning 15 Taka profit. However, government tax should still be collected on MRP + 83% tax, raising questions about tax compliance.

Will MRP Violations Continue?  NBR sets the maximum retail price of cigarettes and tobacco products every year. Yet companies use loopholes and stockpiling tactics to continue charging extra. For example, after a price hike in the budget, companies often sell old stock at higher prices months later, pocketing hundreds of crores of Taka.Recent raids by NBR on BAT and JTI warehouses uncovered stockpiled cigarettes worth ~400 crore Taka in unpaid taxes, confirming illicit practices.³

Despite daily overcharging of 23 crore Taka, no government agency has taken action. According to NBR rules, market monitoring is not under their jurisdiction; this falls to the Department of Consumer Rights Protection. However, lack of enforcement has caused annual tax loss of nearly 6,000 crore Taka and illegal profit accumulation for companies.

Ensuring cigarettes are sold at official MRP, like other consumer goods, is essential to protect public interest and health. The Department of Consumer Rights Protection under the Ministry of Commerce should take rapid and effective action.

Source: 1. https://wclh2020.abstractserver.com/WCLH2020_abstract_book_high.pdf

2. https://www.sushantaksingha.com/2025/07/27/cigarette-companies-deceive-consumers-pocketing-extra-bdt-20-million-daily-over-fixed-prices/
3. https://www.tbsnews.net/bangla/%E0%A6%85%E0%A6%B0%E0%A7%8D%E0%A6%A5%E0%A6%A8%E0%A7%80%E0%A6%A4%E0%A6%BF/news-details-293346

Author: Sushanta Kumar Singha, widely known in the media as Sushanta Sinha. the first Bangladeshi journalist to receive the WHO South-East Regional Director’s Special Recognition Tobacco Control Award (2025) and a two-time winner of Bangladesh’s National Tobacco Control Award (2023 & 2025). I work as a Special Correspondent at Ekattor Television, reporting on tobacco control and public health.

Future contactl: sinhasmp@yahoo.com