TBT REPORT

The draft amendment to the Tobacco Control Act has been finalized without input from key stakeholders. Analysts warn that the proposed changes are largely unrealistic. If implemented, they say, legal cigarette production and the formal market could contract, illicit trade could surge, and government revenue from this major sector could decline sharply. Foreign investment could also be at risk, and nearly 1.5 million small retailers may see their livelihoods threatened.

According to research by Oxford Economics, roughly 9 percent of cigarettes in Bangladesh are already sold on the black market, resulting in an estimated annual revenue loss of Tk790 crore for the government.

The third meeting of the advisory committee tasked with reviewing the Smoking and Tobacco Products Usage (Control) (Amendment) Ordinance 2024 was recently held. Sources indicate that the committee did not take the primary concerns of stakeholders into consideration. Although there was no legal barrier to consulting stakeholders, their input was not sought. The draft has now been submitted to the Cabinet Division for final approval, leaving the sector’s core concerns unaddressed.

The meeting’s minutes indicate that four key revisions were made to the draft. These include removing proposals to ban sales by mobile or itinerant vendors, prohibiting flavorings in tobacco products, and restricting retail pack sales.
The proposal to increase health warnings on tobacco packaging from 50 percent to 90 percent was also slightly scaled back, with the final requirement set at 75 percent.

However, industry stakeholders argue that the draft ordinance still contains the same fundamental concerns as before. For example, it proposes mandatory licensing for cigarette retailers – a requirement widely seen as impractical in Bangladesh.

Around 1.5 million small vendors and street sellers depend on cigarette sales for their livelihoods, and most of them are low-income earners without official identification or business registration. Obtaining a license would be virtually impossible for these vendors.

The draft also retains proposed bans on products intended to reduce tobacco-related harm, including e-cigarettes and nicotine pouches. Analysts warn that enforcing these bans could further expand the illicit market, which has already grown under existing restrictions. They also caution that potential foreign investment in nicotine products could be at risk.

Stakeholders argue that, instead of imposing blanket bans, the government should implement clear and practical regulations to manage these products effectively. NGO-backed proposals to ban additives such as sweeteners and spices in tobacco products have also been retained.

Industry representatives argue that these provisions effectively amount to a ban on the legal sale of cigarettes, bidis, and other tobacco products. They further contend that the draft undermines intellectual property rights.

If implemented, the measure could halt or reduce legitimate production, further expand the black market, and negatively affect government revenue.

During the Awami League government’s tenure, an initiative was taken to amend the Tobacco Control Act, 2005 (amended in 2013). After the interim government assumed office, a high-powered advisory committee was formed in December to review the matter.

According to the official government gazette, the committee was tasked with reviewing the opinions and recommendations of all relevant stakeholders and making recommendations for amendments to the law. Two meetings of the advisory committee were held earlier this year, in February and July. While the potential impacts of the proposed amendments were supposed to be considered, analysts say that under pressure from NGOs, this was not done in practice.