Experts call for tobacco tax reform to boost revenue, improve public health

Economists, physicians and public health experts on Sunday urged the government to undertake effective reforms to the tobacco tax structure, saying such measures could improve public health and significantly increase state revenue.

The recommendations were made at a discussion titled “Budget 2026–27: Advancing Public Health and Increasing Tobacco Revenue” held at the Zahur Hossain Chowdhury Hall of the National Press Club in Dhaka.

The event was jointly organised by PROGGA (Knowledge for Progress) and the Anti-Tobacco Media Alliance (ATMA).

Speakers proposed reducing the number of cigarette price tiers, introducing a specific tax system and increasing the prices of all tobacco products.

They said implementing the proposed reforms could generate nearly Tk44,000 crore in additional revenue from the cigarette sector alone while preventing around 400,000 premature deaths in the long term.

Under the proposals, the low and medium cigarette tiers would be merged, with the retail price set at Tk100 per pack of 10 sticks. The high-tier price would be fixed at Tk150, while premium cigarettes would cost Tk200 or more per pack. The speakers also recommended retaining the existing 67 percent supplementary duty on all cigarette tiers and introducing a specific tax of Tk4 per 10 sticks.

Dr Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS), said the current price gap between low and medium-tier cigarettes is too small.

“Consumers of the low and medium tiers account for 90 percent of all cigarette users. Merging these tiers and fixing the price at Tk100 per 10 sticks could increase government revenue and discourage tobacco use, particularly among the poor and young people,” he said.

Dr Rumana Huque, Professor at the Department of Economics of the University of Dhaka, said tobacco products in Bangladesh remain cheaper than many essential commodities, posing a major threat to public health.

“Effective measures must be taken to make tobacco products unaffordable,” she said.

Professor Dr Syed Abdul Hamid of the Institute of Health Economics at the University of Dhaka said introducing a specific tax system would simplify tax collection and improve efficiency.

Zahirul Alam, Executive Director of Channel 24, stressed the importance of sustained media coverage to highlight the need for higher tobacco taxes and prices.

Public health expert Dr Lenin Choudhury urged policymakers to implement all the proposed tax and price reforms to discourage tobacco consumption, while Dr Abu Jamil Faisel, President of the Public Health Association of Bangladesh, said there was “no alternative” to increasing tobacco taxes in building a tobacco-free Bangladesh.

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The proposals also covered bidi and smokeless tobacco products such as jarda and gul. Experts recommended introducing uniform prices and taxes for filtered and non-filtered bidi, setting the retail price of 20 sticks at Tk30 with a 50 percent supplementary duty.

For smokeless tobacco, they proposed retail prices of Tk60 for 10 grams of jarda and Tk30 for gul, along with a 60 percent supplementary duty. The proposals also included retaining the existing 15 percent VAT on all tobacco products and the current 1 percent health development surcharge.

According to the speakers, tobacco use prevalence among adults aged 15 and above stands at 35.3 percent in Bangladesh, while tobacco-related diseases claim nearly 200,000 lives annually.

They noted that tobacco products remain comparatively cheaper in Bangladesh than in several South Asian countries, including Sri Lanka, the Maldives, Bhutan, Nepal and India. Referring to a 2025 World Health Organization study, the speakers said many countries, including India, Thailand and Türkiye, have already introduced specific taxes alongside ad valorem taxation to raise tobacco prices effectively.

The discussion was moderated by ATMA Co-convener Nadira Kiron. Among others present were Mortuza Haider Liton, Convener of ATMA, and ABM Zubair, Executive Director of PROGGA, along with journalists, anti-tobacco activists and public health experts.