Proposed National Budget 2024-2025: Cigarettes to Become More Expensive1 min read
Finance Minister Abul Hassan Mahmood Ali has proposed an increase in the supplementary duty on cigarettes by 1%, bringing it to 66%. In his budget presentation for the 2024-2025 fiscal year today, the minister emphasized the health risks associated with smoking and the dual goals of reducing consumption and boosting revenue.
To further this aim, the minister also proposed raising the value-added tax (VAT) on the local production of cigarette and bidi papers (an inexpensive type of cigarette made from unprocessed tobacco wrapped in leaves) from 7.5% to 15%.
Read more: Supplementary Duty on Mobile Internet Increased in 2024-25 Budget
The proposed budget includes specific price adjustments for cigarettes:
- Low Slab (10-sticks/pack): Minimum price set at Tk50 and higher with a supplementary duty of 60%
- Medium Slab (10-sticks/pack): Minimum price set at Tk70 and higher
- High Slab: Minimum price set at Tk120 and higher
- Premium Slab: Minimum price set at Tk160 and higher
Finance Minister Abul Hassan Mahmood Ali presented the proposed Tk797,000 crore budget in parliament, marking his first budget presentation and the first budget since the reelection of the Awami League government in January.
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