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The Cabinet has approved a proposal to raise the maximum retail price (MRP) of low-tier cigarettes by Tk 3 per 10-stick pack. Under the Value Added Tax and Supplementary Duty Act, 2012, the ceiling price for low-tier cigarettes has been revised upward from the existing "Tk 62 and above" to "Tk 65 and above."
The decision was finalized on Monday (September 7) during the 20th Cabinet meeting held in the Cabinet Room of the National Parliament Building. The Internal Resources Division (IRD) placed the proposal before the Cabinet to amend two regulatory statutory orders (SROs) concerning cigarette slab pricing and the deployment of tax stamps and banderoles.
According to an official briefing note, the IRD projects that this upward price revision will curb illicit trading in low-tier tobacco products while simultaneously reducing government revenue deficits. The Cabinet granted full statutory approval to the measure.
During the same sitting, the Cabinet also approved a six-month duty and tax exemption framework on the import of machinery and equipment needed to set up renewable solar power plants, waiving customs duties exceeding 1 percent alongside regulatory duty, supplementary duty, VAT, advance tax, and advance income tax.
Additionally, approval was granted for signing a bilateral Investment Promotion and Protection Agreement (IPPA) between Bangladesh and Hong Kong. The 10-year accord is expected to facilitate and expand Hong Kong-based capital flows and foreign direct investment into Bangladesh.
