Finance Minister Muhith goes tough on bidi
Staff Correspondent, bdnews24.com
Published: 01 Jun 2017 05:21 PM BdST Updated: 01 Jun 2017 09:33 PM BdST
-
Workers at a bidi factory in the northern district of Lalmonirhat. Photo: bdnews24.com
Finance Minister AMA Muhith has fixed the tax inclusive price of 25 sticks of non-filter bidi at Tk 15 and 20 sticks of filter bidi, also at Tk 15.
Related Stories
The rates will be effective from Thursday.
No notable reforms or changes in tax structures of the bidi sector have been brought about for the last couple of years, Muhith said.
Due to its easy availability and existing duty structure, a large number of people smoke this product and become vulnerable to health risk, Muhith said.
"Taking all these factors into consideration, I am proposing to abolish the existing tariff value of bidi."
Bangladesh is one of the first signatories to WHO Framework Convention on Tobacco Control.
Considering the health-risk and harmful effects of tobacco products, Bangladesh is committed to reducing the use of tobacco and maintaining compliance with global anti-smoking policy, according to Muhith.
"Maximising revenue collection from this sector has become a challenge."
For the last two years, the National Board of Revenue is gradually moving away from this practice of price fixing and working towards shifting to a uniform tax rate irrespective of prices.
The market share analysis of the low segment cigarette for the past few years suggests that the domestic cigarette manufacturing companies are gradually losing their share of the market. On the other hand, the multinational companies are capturing this market.

Employer fills up empty sticks at a bidi factory in Rangpur. Photo: Reuters
Moreover, the brands marketed by the multinational company in the low segment are in fact the top and popular brands in other countries. This has created uneven competition in the market.
Muhith also fixed the price of the low segment for every 10 sticks of local brand cigarette at Tk 27, up from Tk 23 and increased supplementary duty to 52 percent from 50 percent.
At the same time, Muhith introduced and fixed the price of the low segment for every 10 sticks of international brand cigarette at Tk 35 and supplementary duty at 55 percent.
However, he has not increased any price or supplementary duty for the medium and high-segment cigarette brands which are currently being sold at Tk 45 and above.
-
China parliament to address long-term pitfalls
-
Tech demand drives Asia's factory revival
-
Prioritise competitiveness, diversification: analysts
-
PLSFL defaulters must repay: HC
-
Forex reserves top $44bn
-
Could that be a boom on post-pandemic horizon?
-
NBR seeks SK Sur’s bank account details
-
Mega-projects will change Bangladesh: Naoki
-
Bangladesh rejigs ADP prioritising projects to cut poverty
-
As economy rebounds, China parliament to address long-term pitfalls
-
Former French president Sarkozy convicted of corruption, handed prison sentence
-
Tech demand drives Asia's factory revival, China's slowdown puts dampener
-
Call on Bangladesh to diversify export basket, be more competitive after UN nod for LDC exit
-
PLSFL defaulters must repay, says High Court
Most Read
- Beximco plans to sell Tk 30bn worth of sukuk
- HT Imam, political adviser to prime minister, dies aged 82
- Dhaka city corporations redraw battle plan as mosquito sting thrives
- Former secretary Moinuddin Abdullah named new ACC chairman
- PM’s political adviser HT Imam hospitalised in Dhaka
- Penalised for plagiarism, DU teacher Samia says she has been framed
- Wigmaker sues bdnews24.com for reporting worker unrest
- How to register for coronavirus vaccine in Bangladesh
- Nearly 40 killed in violent day of protests against Myanmar coup, UN envoy says
- Brazil’s COVID crisis is a warning to the whole world, scientists say