National
5 months ago

Cigarettes to get costlier

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Prices of cigarettes are increasing with a hike in supplementary duty and VAT on these products announced in the national budget for the 2024-25 fiscal year (FY25).

Finance Minister Abul Hassan Mahmood Ali announced plans to elevate the supplementary duty on cigarettes containing tobacco products, as outlined in the second schedule of the Act, from 65 per cent to 66 per cent, reports bdnews24.com.

This adjustment aims to discourage the purchase and consumption of cigarettes, which is “outright harmful for human health”, the minister said.

The hikes in the rates will also increase government income from this sector, he said.

He also proposed a rise in the value-added tax at the local manufacturing stage, specifically targeting cigarette paper and bidi paper, from 7.5 per cent to 15 per cent, seeking to further discourage cigarette production and usage.

The minister announced an increase in the price level of low slab 10-sticks/pack cigarettes to Tk 50 and higher and supplementary duty to 60 per cent.

Apart from this, the price level of medium slab 10-sticks/pack cigarettes has been increased to Tk 70 and higher, high slab to Tk 120 and higher and premium slab to Tk 160 and higher and the rate of supplementary duty for these three slabs to 65.5 per cent. 

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