Tobacco Tax Expert Highlights: Industry Propaganda & Challenges in Strengthening Tobacco Control Law
On December 3, 2025, at 11:00 AM, BNTTP organized a webinar titled “Tobacco Industry Propaganda and Reality: Preventing the Strengthening of the Tobacco Control Law.” The event featured key participants, including Dr. Syed Mahfuzul Haque, Ex National Professional of the World Health Organization (WHO) Bangladesh; Professor Shafiun Nahin Shimul, Director of the Institute of Health Economics at Dhaka University; Associate Professor Bazlur Rahman from Dhaka International University; and Sushanta Singha, Special Correspondent at Ekattor Television and Tobacco Control Researcher.
The webinar included a paper presentation by BNTTP Project Director Hamidul Islam Hillol, and was moderated by Senior Project Officer Ibrahim Khalil. The discussion highlighted tobacco industry propaganda, excessive profits, and the progress of law implementation.
Tobacco Control Law and Industry Propaganda: Sushanta Sinha’s Presentation
- Nicotine Addiction: A Personal Battle
Tobacco is a fully addictive product. People know it is harmful but cannot easily quit due to nicotine dependence. Like other habit changes, there is no simple path—every smoker faces a continuous personal struggle.
- Severe Lack of Supportive Environment
A supportive environment is essential to quit smoking. However, such an environment has not yet been created. Cigarettes are easily accessible everywhere—streets, shops, markets—making temptation difficult to resist. Vendors sell cigarettes at bus stops, and even drivers and helpers encourage use. Areas that are supposed to be smoke-free, like buses, offices, and hospitals, remain concerning. For example, at Holy Family Hospital, people were smoking inside the gates, including some staff—a clear indicator of weak law enforcement.
- Tobacco Industry’s Business, Strategy, and Hidden Profits
Research repeatedly shows that tobacco companies increase their profits at every stage from production to sale. A major strategy is to earn extra profits illegally alongside legal sales.
Example: A shop in Banglamotor area, Dhaka, displayed a poster:
- Lucky Sisters – 1 stick 10 BDT
- Lucky Mint – 1 stick 10 BDT
- Lozenges – 2 BDT
- Water – 20 BDT
- “Don’t hesitate to ask for the rest”
Although it appears to be a regular advertisement, it encourages selling cigarettes above the Maximum Retail Price (MRP). A pack with an MRP of 200 BDT was being sold stick by stick at 10 BDT each. According to the National Board of Revenue (NBR), the maximum retail price was 180 BDT, so this is a clear violation intended to collect an extra 20 BDT per pack illegally.
- MRP: Applied to All Products Except Tobacco
MRP rules apply to all products in Bangladesh. For example:
- A 5 BDT packet of biscuits cannot be sold for 6 BDT
- A 3 BDT mini shampoo pack cannot be sold for 4 BDT
- A 10 BDT tissue cannot be sold for 15 BDT
But cigarettes? A 200 BDT pack is consistently sold for 220–240 BDT. After years of research, reports, and collaboration with NBR, the MRP was made mandatory for cigarettes in June 2023, but implementation is still incomplete. Some companies comply; most do not.

- Company Strategy: Depriving Retailers of Profit
This is a subtle strategy. For example, for a 20-stick Benson pack with an MRP of 370 BDT, the company sells it to retailers for 369.98 BDT. This leaves the retailer with only 2 paisa profit—while selling 5 BDT biscuits gives 1 BDT commission. Retailers are thus forced to sell at higher prices, and the company secretly instructs them to sell each stick for 20 BDT more. This means a 370 BDT pack is sold for 400 BDT, with the extra 30 BDT going entirely to the company—without any tax revenue for the government.
Currently, 2.1 billion cigarette sticks are sold daily in Bangladesh. If just 1 BDT extra per stick is charged, this generates 21 crore BDT daily, 620–630 crore BDT monthly, and approximately 8,000 crore BDT annually—illegally extracted from consumers.
- Revenue Myths
Tobacco companies claim, “We provide the most revenue.” This is misleading. Taxes, VAT, and duties are all imposed on consumers, not the companies. When people buy cigarettes, they are actually paying these taxes, which companies then remit to the government. Therefore, 96% of the revenue collected comes from consumers. Companies themselves only pay 4% as income tax and misleadingly claim all revenue as their contribution.
- Misleading Policymakers
Tobacco companies attempt to influence policymakers by instilling fear, e.g., claiming that 1.5 million people will lose jobs if tobacco control laws are amended. This is false—retailers sell multiple other products and will not become unemployed. Discussions with the Economic Adviser have confirmed that these claims are false, but accurate information still needs to reach policymakers.
Closing Remarks:
Fighting against tobacco industry propaganda, misinformation, excessive profits, and legal exploitation is difficult but not impossible. Collective action can bring change, as seen in the MRP reform. Our responsibilities now include:
- Ensuring full implementation of the law
- Preventing corporate malpractice
- Prioritizing public health
- Imposing a specific 1 BDT tax per cigarette stick
Thanks to BNTTP for including him in this important discussion.
Contact: sinhasmp@yahoo.com
Webinar link: https://www.youtube.com/live/jEifjjfpyuk