Capacity building for tobacco taxation system reform
Overview
Both imported and domestically produced tobacco products are taxed in Bangladesh. The tax system is tiered ad-valorem. Value added tax (VAT), supplementary duty (SD) and health development surcharge are imposed on domestically produced tobacco products including cigarettes, biri and smokeless tobacco products (SLT). Tobacco products remain, however, very affordable in Bangladesh. To increase the price of and reduce demand for tobacco products, WHO along with partners is working closely with the National Board of Revenue (NBR) to strengthen the tobacco tax system in Bangladesh. Tobacco taxation saves lives.
Key facts
- Raising tobacco taxes in Bangladesh could save the lives of 1 million adults by preventing premature deaths from smoking related illnesses
- Raising tobacco taxes in Bangladesh could generate between BDT 67 billion and 120 billion of additional tax revenue in a fiscal year.
