Nari Maitree, media professionals, and tobacco control experts on Monday called for price hikes and effective taxation on tobacco products in the upcoming national budget, to protect public health by reducing tobacco use.
This demand was raised at a press conference titled "Demand for Effective Tax and Price Increase on Tobacco Products in the Upcoming Budget 2025-26 for Public Health Protection", held at the National Press Club.
Speakers urge to increase budget allocation for water, sanitation sector
The press conference was presided over by Shaheen Akter Dolly, Executive Director of Nari Maitree while Mir Masrur Zaman, Chief News Editor of Channel i, and speaker Dr. Shafiun Nahin Shimul, Professor of Health Economics at Dhaka University, were present. Representatives from the Youth Forum Against tobacco, Mothers’ Forum Against tobacco , Teachers’ Forum Against tobacco and students from various universities also attended the event.
Speakers demanded that the lower and medium tiers of cigarettes be merged, setting the minimum retail price of a 10-stick cigarette pack at TK 90. They pointed out that due to the close price range between these two tiers, consumers tend to switch to cheaper options when prices rise, especially from medium to lower tiers. However, merging the two and increasing prices would discourage consumption, particularly among youth, potentially preventing around 900,000 premature tobacco-related deaths among young people in the long term.
In the keynote speech, Hasan Shahriar, Head of the Tobacco Control Program at PROGGA, stated, “The current four-tier price structure of cigarettes (low, medium, high, and premium) hinders effective taxation and pricing strategies. Especially the minimal price difference between the low and medium tiers allows smokers to easily switch between them. If these tiers are merged and prices increased in the 2025-26 budget, it would discourage smoking among low-income groups and the younger generation.”
He also outlined the proposed tax and price measures, including setting the retail price of a 10-stick cigarette pack at BDT 90 by merging the low and medium tiers, keeping the high-tier retail price unchanged at BDT 140, setting the premium-tier price at BDT 190 per 10 sticks, imposing a 67% supplementary duty, 15% VAT, and a 1% health development surcharge on the retail price of cigarettes.
Additionally, the demand includes setting the retail price of a 25-stick non-filtered bidi pack at TK 25 and a 20-stick filtered bidi pack at TK 20, with a 45% supplementary duty. A 10-gram pack of jorda should retail at BDT 55, and a 10-gram pack of gul at BDT 30, each with a 60% supplementary duty. All tobacco products should continue to be subject to a 15% VAT and a 1% health development surcharge on their retail prices.
Retired customs and VAT officers urge govt to revise new revenue ordinance
Nasrin Akter, Coordinator of the Tobacco Control Project at Nari Maitree, stated that reforming the existing tax system as per the recommendations in the upcoming budget could reduce cigarette use from 15.1% to 13.03%. It would encourage nearly 2.4 million adults to quit smoking and discourage around 1.7 million youths from starting. In the long run, it could prevent approximately 864,758 adult and 869,000 youth premature deaths. Moreover, it could generate around BDT 68,000 crore in revenue, an increase of BDT 20,000 crore compared to the previous year—representing a 43% rise.