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Civic groups demand penalties for tobacco companies violating MRP

Photo: Reuters.

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The civic groups also complained that tobacco companies are depriving the government of significant revenue by flouting MRP provisions

Press Release

Publisted at 5:04 PM, Tue Apr 2nd, 2024

Civic groups have said that all tobacco companies must ensure the sale of cigarettes at the maximum retail price (MRP) and have demanded penalties for those who violate this rule.

During an online discussion on Tuesday (April 2nd), panelists stated that many vendors and supermarkets were selling cigarettes at prices higher than the MRP, despite a June 2023 circular prohibiting such practices.

The civic groups also complained that tobacco companies are depriving the government of significant revenue by flouting MRP provisions, reads a press release.

The speakers suspected that tobacco companies might be encouraging violations of the MRP. 

The speakers complained that tobacco sellers keep the excess earnings (from sales at higher prices than MRP) undisclosed, thus actually generating ‘black money’. They demanded immediate action from the National Board of Revenue (NBR) and the Directorate of National Consumer Rights Protection (DNCRP) to curb this trend.

They also demanded that the government reintroduce the 25% supplementary duty on tobacco production. They pointed out that if it had not been revoked, the government could have earned Tk400 crore in revenue, equivalent to the annual budget of Bangabandhu Sheikh Mujib Medical University (BSMMU). 

Dr Sohel Reza Chowdhury, Head of the Cardiology and Research Department at the National Heart Foundation, chaired the discussion.

The Bangladesh Network for Tobacco Tax Policy (BNTTP) organised the discussion on the necessity of MRP implementation.

Among others, Bangladesh Cancer Society President Professor Golam Mohiuddin Faruque, public health policy expert Syed Mahbubul Alam Tahin attended the event.  

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