Proposed tobacco tax structure may make products cheaper: experts
Daily Sun Report, Dhaka
Published: 17 Jun 2026, 06:51 PM
Photo: Courtesy
The proposed national budget for FY 2026–27 has failed to introduce an effective tobacco tax and pricing structure that can protect public health while increasing government revenue, experts said at a press conference on Wednesday.
They warned that the marginal increase in the
price of low-tier cigarettes and unchanged prices and tax rates on bidis, zarda
and gul would reduce the real prices of these products, making tobacco more
affordable and encouraging consumption, especially among young people and
low-income groups.
The remarks were made at a post-budget press
conference organised by Dhaka Ahsania Mission at the National Press Club
following the announcement of the FY2026–27 national budget.
The event was addressed by Masudul Haque,
president of the Bangladesh Secretariat Reporters Forum; MM Badsha, general
secretary of the Crime Reporters Association; and Iqbal Masud, director of the
Health Sector of Dhaka Ahsania Mission. Shariful Islam, coordinator of the
Tobacco Control Project, presented the keynote paper.
The speakers said low-tier cigarette brands
account for nearly 75% of the country's cigarette market and are mainly
consumed by poor and young people. Under the proposed budget, the retail price
of a 10-stick pack of low-tier cigarettes has been increased by only Tk2 to
Tk62, a rise of just 3.33%.
They said the increase is lower than the
growth in per capita income and inflation, meaning the real price of low-tier
cigarettes would fall, making them more affordable and potentially increasing
consumption.
The speakers said that if the government
merged the low and medium cigarette tiers, fixed the retail price at Tk100 per
10-stick pack, imposed a specific supplementary duty of Tk4 per pack and
increased prices of all tobacco products, it could generate nearly Tk44 billion
in additional revenue compared with the current fiscal year. They added that
such measures could prevent around 400,000 premature deaths in the long term.
Although prices of medium, high and premium
cigarette tiers have been raised to some extent, no major reform has been
introduced in the tobacco tax structure, they said. As a result, a significant
portion of the price increase could become additional profit for tobacco
companies, allowing them to expand their businesses.
The speakers also criticised the unchanged
prices and tax rates of bidis, zarda and gul, saying these products would
become cheaper in real terms and pose increased health risks, particularly for
women and low-income groups.
They further raised concerns over taxes
imposed on nicotine pouches and heated tobacco products, saying such measures
could legitimise emerging nicotine products despite recommendations from the
Health Ministry to ban them.
According to the speakers, more than 35% of
adults in Bangladesh use tobacco, while nearly 200,000 people die annually from
tobacco-related diseases. They estimated the yearly economic cost of
tobacco-related health and environmental damage at around Tk870 billion.
They urged the government to use the final
budget for FY2026–27 as an opportunity to reform the tobacco tax system by
merging low and medium cigarette tiers, introducing a specific tax mechanism,
increasing taxes on bidis, zarda and gul, and permanently banning emerging
nicotine products, including nicotine pouches and heated tobacco products.