The tax and price structure imposed on tobacco and tobacco products in the proposed national budget for FY 2026–27 is insufficient to achieve the objectives of public health protection and revenue generation, said speakers.
They warned that the marginal increase in the price of low-tier cigarettes and the unchanged prices and tax rates on bidis, zarda, and gul will effectively reduce the real prices of these products, making tobacco products more affordable and potentially increasing tobacco use among young people and low-income populations.
These observations were made at a post-budget press conference on the national budget for FY 2026–27, organised by Dhaka Ahsania Mission at the Jatiya Press Club on Wednesday.
The speakers noted that approximately 75 percent of the country's cigarette market is occupied by low-tier cigarettes, whose primary consumers are poor and young people. The proposed budget increases the price of a pack of 10 low-tier cigarettes by only BDT 2, setting the price at BDT 62—an increase of just 3.33 percent.
Both per capita income growth and inflation rates are significantly higher than this increase and the real price of low-tier cigarettes will decline, leading to increased consumption, they said.
On the other hand, if the low and medium cigarette tiers were merged and the price of 10 sticks was set at BDT 100, a specific supplementary duty of BDT 4 per pack was imposed, and the prices of all tobacco products were increased, it would be possible to generate approximately BDT 44 billion in additional revenue compared to the current fiscal year.
At the same time, nearly 400,000 premature deaths could be prevented in the long term.
The speakers further stated that although the prices of medium, high, and premium-tier cigarettes have been increased to some extent, no fundamental reform has been introduced in the tax structure.
Consequently, a significant portion of the price increase will translate into additional profits for tobacco companies, enabling them to further expand their tobacco businesses, posing a serious threat to public health.
The proposed budget also leaves the prices and tax rates on bidis, zarda, and gul unchanged, making these inexpensive products even more affordable and accessible, thereby increasing health risks, particularly for women and low-income populations.
Furthermore, by imposing taxes on nicotine pouches and heated tobacco products without considering the Ministry of Health's recommendation to prohibit these products, the government has effectively legitimized these emerging products, creating the risk of expanding new forms of nicotine addiction.
The speakers also highlighted that more than 35 percent of adults in Bangladesh use tobacco and that tobacco-related diseases cause nearly 200,000 deaths annually. The economic cost of tobacco-related health and environmental damage is estimated at approximately BDT 87 billion per year.
The speakers at the event included Masudul Haque, President of the Bangladesh Secretariat Reporters Forum (BSRF); M.M. Badshah, General Secretary of the Crime Reporters Association (CRA); and Iqbal Masud, Director of the Health Sector at Dhaka Ahsania Mission. The keynote paper was presented by Shariful Islam, Coordinator of the Tobacco Control Project.
The speakers demanded that the final budget for FY 2026–27 include reforms to the tobacco tax and price structure, the merger of low and medium cigarette tiers with increased prices, the introduction of a specific tax system, higher taxes and prices on bidis, zarda, and gul, and a permanent ban on all emerging nicotine products, including nicotine pouches and heated tobacco products.
They emphasised that these measures are essential to protect public health, safeguard the younger generation from nicotine addiction, and capitalize on the opportunity for increased government revenue.