Tobacco companies are selling 53 cigarette brands at 12 different price points under the government-approved four-tier pricing system, allowing smokers to switch to cheaper brands according to their affordability, according to a survey by PROGGA (Knowledge for Progress).
The rapid survey, conducted among 80 retailers in eight divisional cities in September 2026, found that cigarettes in the low-price tier alone were available at eight different prices, according to a press release issued on Sunday.
The highest-priced cigarette in the low tier costs Tk 90, almost matching the starting price of the medium tier at Tk 92, the survey found.
Anti-tobacco advocates have long demanded that the number of cigarette price tiers be gradually reduced from four to one, preventing consumers from opting for cheaper brands or switching according to their affordability when prices rise.
Global evidence suggests that a single price tier can maximise the impact of tobacco tax and price increases, particularly by encouraging young people and low-income consumers to quit smoking and discouraging smoking initiation.
However, in Bangladesh, with cigarettes currently available at 12 different price points, tax and price increases are failing to achieve their full potential in reducing cigarette consumption, PROGGA said.
This is largely attributable to the existing flawed cigarette tax structure, it said.
Analysis of the survey data reveals that by using the phrase “and above” to each price tier, the government has effectively granted companies the flexibility to utilise price ranges.
For instance, the low tier is designated as “Tk 65 and above”, while the medium tier is set at “Tk 92 and above”.
In other words, companies can market cigarettes in the low tier at any price point ranging from Tk 65 to Tk 91, while the existing structure allows them to market different brands at numerous price points across the tiers, all the way up to the premium tier.
The survey recommends eliminating the “and above” provision from the price tiers, setting a single price point for each tier, and gradually reducing the number of tiers to one to maximise the impact of tobacco tax and price increases.