TBT DESK: Economists, public health experts and policy analysts have stressed the need for introducing a specific excise tax on tobacco products alongside existing ad valorem duties to strengthen public health protection and increase government revenue.

Speaking at a roundtable discussion titled “Effective Tobacco Tax Structure for Public Health Protection” in the capital, participants argued that the current tax structure, while relatively rational, is insufficient to curb consumption or significantly raise revenue.

The event was organised jointly by the Bureau of Economic Research, University of Dhaka and the Bangladesh Network for Tobacco Tax Policy.

Economist Saima Haque Bidisha said there is no alternative to introducing a specific tax alongside ad valorem duties on tobacco products.

She warned that simply raising prices without structural tax reform would fail to deliver public health benefits and could instead increase corporate profits.

At the event, participants proposed a revised tobacco tax framework for the upcoming fiscal year, including tiered pricing for cigarettes and a fixed supplementary duty per stick, alongside maintaining VAT and health development surcharges.

The recommendations also included simplifying cigarette price tiers, setting higher retail price benchmarks, and introducing uniform taxation for bidis, jarda and gul to reduce inconsistencies in the current structure.

Experts further suggested reinstating export duties on tobacco leaf and strengthening enforcement mechanisms to ensure compliance.

Chief guest Md Enamul Haque said a national tobacco tax policy is urgently needed as a guiding framework for both revenue mobilisation and public health protection.

He added that effective implementation of the proposed measures could significantly reduce smoking rates, including preventing hundreds of thousands of young people from taking up tobacco use.

Speakers also criticised tobacco companies for misleading narratives and urged the government to establish a sustainable, comprehensive taxation system to reduce dependence on harmful products while boosting state revenue.