Cigarette manufacturers in Bangladesh are selling 53 brands at 12 different price points within the government’s four-tier pricing system, giving smokers opportunities to switch to cheaper products when prices rise, according to a new survey.
The findings highlight how gaps in the existing tobacco tax structure allow manufacturers to offer cigarettes at multiple prices within the same category, potentially weakening the impact of tax increases aimed at reducing smoking.
A rapid survey conducted by tobacco control advocacy organisation Knowledge for Progress or PROGGA among 80 retailers in eight divisional cities in September found eight different price points in the lowest cigarette tier alone.
The most expensive brand in the low-price category sells for Tk90, just Tk2 below the medium tier’s starting price of Tk92.
Under the current system, the government sets the low tier at Tk65 “and above” and the medium tier at Tk92 “and above”.
PROGGA said the wording effectively allows manufacturers to price cigarettes anywhere between Tk65 and Tk91 within the lowest tier, while offering multiple price points across the remaining categories.
The availability of cheaper alternatives means smokers can switch brands according to their purchasing power rather than reduce consumption when cigarette prices increase, the organisation argued.
Anti-tobacco campaigners have long called for Bangladesh to gradually replace its four-tier system with a single cigarette price tier.
PROGGA said international evidence suggests that a single-tier structure could make tobacco tax increases more effective, particularly in encouraging young people and low-income smokers to quit while discouraging others from starting.
The organisation argued that Bangladesh’s 12 existing price points undermine the effectiveness of tobacco taxation in curbing cigarette consumption.
The survey recommended removing the “and above” provision from official price categories and introducing a fixed price point for each tier.
It also called for gradually consolidating the four categories into a single tier to limit opportunities for smokers to switch to cheaper brands following tax increases.
