DHAKA : Economists and public health experts have stated that implementing effective taxes and price hikes on tobacco products, free from the interference of tobacco companies, in the upcoming FY 2025–26 budget will reduce tobacco-related deaths and significantly increase government revenue, accoding to a press release.
They shared this insight at a discussion meeting titled “Tobacco Tax Proposal in the Upcoming FY 2025–26 Budget” held on the Saturday of 24 May 2025 at the auditorium of Dhaka Ahsania Mission.
The meeting was presided over by Dr. Mohammad Khalilullah, Vice President of Dhaka Ahsania Mission, while the welcome speech was delivered by Md. Mukhlesur Rahman, Deputy Director of the Health Sector of the Mission. The key speaker was Professor Dr. Syed Akram Hussain, Member of the Health Sector Reform Commission. Other discussants included Dr. Rumana Haque, Professor of Economics at the University of Dhaka; Ferdous Mamun, Chief News Editor of Global TV; M.M. Badshah, Chief News Editor of Bangla TV; Mainul Hasan Sohel, General Secretary of the Dhaka Reporters’ Unity; Rashed Rabbi, President of the Bangladesh Health Reporters’ Forum; and Nazmul Hasan Mahmud, President of the Bangladesh Shop Business Owners Association.
During the discussion, a proposed structure for tobacco tax and pricing in the upcoming budget was unveiled. The proposal recommended merging the lower and medium tiers of cigarettes and setting the retail price at BDT 90 per 10-stick pack. For the high and premium tiers, the proposed retail prices were BDT 140 and BDT 190 respectively. The current tax structure—comprising a 67% supplementary duty, 15% value-added tax (VAT), and a 1% health development surcharge on the retail price—would be maintained for cigarettes. In addition, the proposal suggested setting the retail price of 25-stick non-filtered bidis at BDT 25 and 20-stick filtered bidis at BDT 20, accompanied by a 45% supplementary duty. For smokeless tobacco products, the proposed retail price was BDT 55 per 10 grams of jarda and BDT 30 per 10 grams of gul, both subject to a 60% supplementary duty.
Presenting the keynote paper, Md. Shariful Islam, Project Coordinator of the Tobacco Control Project at Dhaka Ahsania Mission, stated that if the proposed tax reform is implemented in FY 2025–26, cigarette consumption could drop from 15.1% to 13.03%. This would encourage approximately 2.4 million adults to quit smoking and deter around 1.7 million youths from initiating tobacco use. Over the long term, it could prevent the premature deaths of approximately 864,758 adults and 869,000 youths. Furthermore, the government could earn nearly BDT 68,000 crore in revenue—a 43% increase, or BDT 20,000 crore more than the previous fiscal year.
Supporting the proposal, the speakers emphasized that in increasing cigarette or tobacco product prices, public health protection must be prioritized over revenue generation.
They also stressed that there is no alternative to increasing tobacco taxes and prices in the upcoming budget to protect future generations from the harmful grasp of tobacco and to reduce the number of new tobacco users.
