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Call to Reinstate 25% Duty on Tobacco Leaf Exports at Pre-Budget Meeting
April 26, 2026
Call to Reinstate 25% Duty on Tobacco Leaf Exports at Pre-Budget Meeting

As part of finalizing the national budget for the upcoming fiscal year, the Ministry of Finance held a pre-budget meeting with members of the Economic Reporters Forum (ERF) on April 25, 2026, at the Secretariat. The meeting was attended by the Finance Minister, Planning Minister Amir Khasru Mahmud Chowdhury, the Chairman of the National Board of Revenue (NBR), the Secretary of the Finance Division, the Secretary of the Financial Institutions Division, and secretaries from the Planning Ministry.

At the meeting, the ERF President presented several recommendations on behalf of the organization. Among them, as an ERF member, I proposed reinstating the 25% export duty on tobacco leaf.

Although the NBR is actively pursuing revenue collection from various sectors, the 25% duty on tobacco leaf exports was withdrawn in the 2018–19 fiscal year, primarily benefiting tobacco companies. Previously, the government earned Tk 25 in tax revenue for every Tk 100 worth of tobacco leaf exports. However, this exemption has resulted in a significant loss of revenue.

I presented data on the rising volume of tobacco leaf exports. In the last fiscal year alone, companies such as BAT, JTI, and Abul Khair Group exported tobacco leaf worth more than Tk 3,000 crore. Had the 25% duty remained in place, the government could have earned approximately Tk 750 crore in revenue.

I highlighted that while a handful of tobacco companies are enjoying tax benefits, the government is increasing the tax burden on essential consumer goods. This raises concerns about equity and fairness in tax policy. The forgone revenue is substantial,comparable to the total budget of a major public hospital.

To enhance government revenue, I urged the reinstatement of the 25% export duty on tobacco leaf and requested the NBR Chairman to take necessary action. The Finance Minister immediately instructed the NBR Chairman to take note of the matter.