The government is set to lose at least Tk200 billion in additional revenue in the 2025–26 fiscal year as the proposed national budget leaves cigarette prices and tax rates unchanged across all tiers, according to public health experts.
Anti-tobacco campaigners warn that the decision not only undermines tobacco control efforts but could also lead to increased smoking, particularly among youth.
To address the revenue loss and health risks, anti-tobacco advocates are urging the government to reform the cigarette tax structure. They propose merging the low and medium tiers—currently accounting for 80% of the cigarette market—into a single tier, with a minimum retail price (MRP) of Tk90 per 10-stick pack. Such a move, they argue, would both discourage consumption and significantly boost government revenue.

In addition, the proposed budget keeps bidi prices unchanged for the sixth consecutive year, while the supplementary duty on bidis remains static for the tenth year. Activists have criticised this inaction, highlighting that bidis are among the most harmful tobacco products and are largely consumed by lower-income groups.
There is also no change in the tax regime for smokeless tobacco products such as jarda and gul. This is particularly concerning, experts say, as more than 50% of tobacco users in Bangladesh consume smokeless forms—most of whom are women and people from disadvantaged communities. With inflation and rising incomes, these products are becoming increasingly affordable, heightening the associated health risks.

The budget does include a few modest changes: the advance tax on the net sale price of cigarette manufacturers has been raised from 3% to 5%, while the supplementary duty on imported cigarette paper for commercial use has been doubled from 150% to 300%. While these steps are seen as positive, public health advocates argue they fall short of what is needed to drive meaningful change.
“Tobacco claims 442 lives every day in Bangladesh,” said ABM Zubair, executive director of PROGGA (Knowledge for Progress), reacting to the budget proposal. “If the government adopts the recommendations of anti-tobacco activists, it could significantly reduce tobacco use and related deaths—while also increasing national revenue.”
According to the Global Adult Tobacco Survey, 35.3% of adults aged 15 and above in Bangladesh use tobacco in some form. Health experts estimate that comprehensive tax reform could prevent 1.7 million premature deaths—including 900,000 among youth—and substantially strengthen the country’s fiscal health.