Finance Minister Abul Maal Abdul Muhith has proposed to impose 1% Health Development Surcharge on all imported and domestically produced tobacco products.
While placing the budget for fiscal 2014-15, he said: “The fund which received could be used for the treatment and rehabilitation of tobacco disease-stricken people.”
He said: “Presently, cigarette prices are based on 4 slabs. We determine tax incidence on the basis of these price slabs. I propose that the tax incidence of the premium and high slabs will be the same or 76%, and for the medium slab is 75% and finally, for the lowest slab is 58%. The 1% Health Development Surcharge will be imposed on these items.”
“The proposed value slabs and tax incidence on cigarettes are presented in Table 11
Value slab and tax incidence of cigarette containing tobacco.”
The minister also proposed that the price of 25 sticks non-filter cigarettes are at Tk6.14 and 20 sticks filter cigarettes are at Tk6.94.
Besides, he proposed to raise the existing supplementary duty rate on jarda and gul products from 30% to 60%.
The present prices of 25 sticks non-filter and 20 sticks filter bidis are Tk5.354 and Tk6.052 respectively.
