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Published : April 30, 2026

Demand for effective taxation on tobacco products in the upcoming budget to protect public health

TBT DESK

To safeguard public health, the Bangladesh Secretariat Reporters Forum (BSRF) has called for the implementation of a strong tax policy, including effective taxation and price increases on tobacco products in the upcoming 2026–27 national budget. This demand was raised during a discussion meeting titled “The Importance of Effective Tobacco Taxation in the Upcoming 2026–27 National Budget,” jointly organized by Dhaka Ahsania Mission and BSRF at the CIRDAP auditorium on Thursday (30 April 2026).

The chief guest at the event, Additional Secretary of the Health Services Division (World Health Wing), Sheikh Momina Moni, stated that the easy availability of tobacco products in Bangladesh is significantly increasing smoking rates among youth and low-income populations, posing a serious threat to public health. She emphasized that merely increasing prices is not enough; tobacco prices must rise at a rate higher than inflation and income growth to effectively reduce consumption.

Speakers at the event included BSRF General Secretary Ubaidullah Badal and former BCIC Chairman Mostafizur Rahman. The welcome address was delivered by Mokhlesur Rahman, Deputy Director of the Health Sector at Dhaka Ahsania Mission.

They noted that tobacco products in Bangladesh remain relatively cheap compared to essential commodities. Due to the lack of price adjustments in line with inflation and income growth, tobacco products remain affordable to consumers. As a result, they become more accessible to youth, reducing the effectiveness of tobacco control efforts. Without significant price increases, tobacco products will continue to remain within reach of low-income groups, increasing health risks.

They further stated that the current tobacco tax structure causes the government to lose approximately BDT 44,000 crore in potential revenue annually. Effective tobacco taxation is a powerful policy tool that can reduce smoking, protect public health, and simultaneously increase government revenue.

Each year, around 200,000 people die prematurely in Bangladesh due to tobacco-related diseases. In 2024, the economic cost of tobacco-related health and environmental damage was approximately BDT 87,000 crore, while revenue from the sector was only about BDT 41,000 crore. To reduce this loss, they emphasized that tobacco control must be viewed from a public health perspective rather than solely as a revenue-generating sector, and that increasing prices through effective taxation is essential.

The keynote paper was presented by Shariful Islam, Project Coordinator at Dhaka Ahsania Mission. He highlighted that between 2021 and 2023, the prices of essential commodities increased significantly—sugar by 88.97%, potatoes by 86.58%, and flour by 75.09%—while prices of cigarettes rose much less: 15.38% for low-tier, 6.35% for mid-tier, and 11.11% for premium cigarettes. Since mid-tier cigarettes have the highest number of consumers but saw the lowest price increase, cigarettes are effectively becoming cheaper relative to essential goods.

He also proposed restructuring the cigarette market by merging the low and mid-tier segments, resulting in three tiers. Suggested retail prices for 10-stick packs would be BDT 100, 150, and 200, respectively. Additionally, maintaining a 67% supplementary duty across all tiers and imposing a specific tax of BDT 4 per pack were recommended.

In his closing remarks, BSRF President Masudul Haque stated that tobacco companies often spread misinformation ahead of the budget, claiming that higher taxes will increase smuggling. He dismissed this as baseless, noting that cigarette prices in Bangladesh are still lower than in neighboring countries, leaving little scope for smuggling. He also emphasized that the forum will remain vigilant in countering such tactics and misinformation through the media.

All members of the BSRF Executive Committee were present at the event

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