Implementing a uniform ad valorem tax rate for all tiers in addition to increasing the base price of low-tier cigarettes would increase government tax revenues between 34.90 billion and 42.01 billion taka, while reducing industry revenues. This would discourage the tobacco industry from further expanding in the low-tier market. The policy brief concludes by recommending this strategy for the government in order to raise tax revenue and prevent attempts from cigarette companies to avoid taxes.

Project: Think Tanks Project: Accelerating Progress on Tobacco Taxes in Low- and Middle-Income Countries

Content Type: Policy Brief 

https://tobacconomics.org/research/the-complicated-cigarette-tax-structure-in-bangladesh-is-causing-expansion-of-the-low-tier-cigarette-market-and-lower-tax-revenue/