Finance Minister Abul Hassan Mahmood Ali has proposed an increase in the supplementary duty on cigarettes by 1%, bringing it to 66%.
Calling cigarettes extremely harmful to human health, the minister while unveiling the budget for the 2024-2025 fiscal year in parliament on Thursday made the proposal in order to reduce the consumption of such harmful products and increase revenue collection.
Additionally, he suggested raising the value-added tax (VAT) on the local production of cigarette and bidi papers (a type of inexpensive cigarette made from unprocessed tobacco wrapped in leaves) to 15%, up from the current 7.5%.
The minister proposed increasing the price level of low slab 10-sticks/pack cigarettes to Tk50 and higher and supplementary duty to 60%, medium slab 10-sticks/pack cigarettes to Tk70 and higher, high slab to Tk120 and higher, and premium slab to Tk160 and higher.
Finance Minister Abul Hassan Mahmood Ali presented the proposed budget for the 2024-2025 fiscal year amounting to Tk797,000 crore in parliament on Thursday.
This was his first budget unveiling and the first budget after the reelection of the Awami League government in January.
