Jakarta:A recent survey conducted by PROGGA (Knowledge for Progress) reveals that tobacco companies in Bangladesh are offering 53 cigarette brands at 12 distinct price points. This is under a government-approved four-tier pricing system that enables smokers to switch to cheaper brands based on their affordability.
According to United News of Bangladesh, the survey, which was carried out among 80 retailers in eight divisional cities in September 2026, highlights that even in the low-price tier, cigarettes are available at eight different prices. The most expensive cigarette in this tier is priced at Tk 90, closely approaching the starting price of the medium tier at Tk 92.
Anti-tobacco advocates have long argued for a reduction in the number of cigarette price tiers from four to one. They believe this would prevent consumers from switching to cheaper brands as prices increase. Global evidence suggests that a unified price tier could enhance the impact of tobacco tax and price hikes, especially in discouraging smoking among young people and low-income groups.
Currently, with 12 price points, Bangladesh's tax and price increases are not fully effective in reducing cigarette consumption, as stated by PROGGA. The organization attributes this inefficacy to the country's flawed cigarette tax structure. The survey points out that the use of the phrase 'and above' in price tiers allows companies flexibility in setting prices within a range. For example, the low tier is categorized as 'Tk 65 and above', enabling companies to sell cigarettes at any price between Tk 65 and Tk 91.
The survey recommends the removal of the 'and above' clause to set a single price point per tier and gradually reduce the number of pricing tiers to one. This approach aims to maximize the impact of tobacco tax and price reforms.