Experts call for effective tobacco tax and price increase in budget

A seminar titled “The Necessity of Effectively Increasing Taxes and Prices on All Tobacco Products in the Upcoming FY 2026–27 Budget for Protecting Public Health” was organized by Development Organisation of the Rural Poor-DORP on Wednesday morning (13 May 2026) at the CIRDAP Auditorium in the capital, demanding effective taxation and price increases on tobacco products in the national budget for the fiscal year 2026–27 to safeguard public health.

The chief guest at the seminar was Munshi Alauddin Al Azad, Secretary of the Ministry of Religious Affairs. He stated that tobacco products in Bangladesh remain significantly cheaper than essential commodities. Referring to data from the Department of Agricultural Marketing, he noted that between 2021 and 2023, the prices of essential goods such as sugar, potatoes, flour, eggs, and soybean oil increased by 27 to 89 percent, whereas cigarette prices rose by only 6 to 15 percent during the same period. As a result, tobacco products have become more accessible, particularly to youth and low-income populations, leading to an alarming increase in smoking rates that poses a major threat to public health. He emphasized that to reduce these health risks, tobacco prices must increase at a rate higher than inflation and income growth.

Special guest Nahid Nowshad Mukul, first secretary (VAT Monitoring and IT) of the National Board of Revenue, said that due to the current tobacco tax structure, the government is losing the opportunity to generate an additional BDT 44,000 crore in annual revenue. He added that this substantial amount could significantly improve the education, healthcare, and social protection sectors. According to him, effective tobacco taxation is a powerful policy tool that can simultaneously reduce smoking, protect public health, and increase government revenue.

The keynote paper was presented by Dr Shafiun Nahin Shimul, Director of the Institute of Health Economics at the University of Dhaka. He pointed out that Bangladesh currently has a four-tier cigarette pricing system—low, medium, high, and premium—with nearly 90 percent of cigarettes sold belonging to the low and medium tiers. Due to their affordability and accessibility, these cigarettes are rapidly addicting young people and low-income groups. He proposed merging the low and medium tiers in the upcoming fiscal year and setting the minimum retail price at BDT 100 per 10-stick pack, BDT 150 for the high tier, and BDT 200 for the premium tier, while maintaining a 67 percent supplementary duty across all tiers and imposing a specific tax of BDT 4 per pack. He stated that implementing this tax and pricing proposal could discourage more than 372,000 youths from initiating smoking and prevent the premature deaths of over 185,000 young people in the long term.

Md Akhtaruzzaman, Director General of the National Tobacco Control Cell, said that Bangladesh has the highest tobacco use rate in South Asia at 35.3 percent, and nearly 200,000 people die prematurely every year from tobacco-related diseases. In 2024, the economic and environmental damages caused by tobacco amounted to nearly BDT 87,000 crore—more than double the revenue generated from the sector. He highlighted successful international examples from Philippines, Turkey, Mexico, and South Africa, where effective tobacco taxation reduced tobacco use while significantly increasing government revenue. In particular, he noted that the Philippines’ Sin Tax Reform led to a 28.1 percent decline in cigarette sales between 2012 and 2015 and more than tripled tobacco tax revenue. Similarly, South Africa’s strengthened tobacco tax policies resulted in lower smoking rates and a ninefold increase in government revenue. He stressed that tobacco should not be viewed merely as a source of revenue; instead, effective tax policies are essential for protecting public health.

The welcome speech at the seminar was delivered by AHM Noman, Founder and CEO of DORP, while the concluding remarks were delivered by Mohammad Nurul Amin. The session was moderated by Mohammad Jobayer Hasan. Among others present were Md Mostafizur Rahman, former Chairman of BCIC, Jeba Afroza, and other distinguished guests.