Experts call for stronger tobacco taxation ahead of FY2026-27 budget
Proposal sets Tk100 minimum price for 10-stick cigarette pack
Public health experts have urged the government to reform tobacco pricing and taxation in the upcoming FY2026-27 national budget, saying stronger taxes could reduce tobacco consumption and increase government revenue.
They said tobacco-related diseases cost Bangladesh nearly Tk87,000 crore in healthcare expenses each year.
The call came at an orientation workshop for journalists and tobacco control advocates held today at the office of the Power and Participation Research Centre (PPRC) in Dhaka.
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Experts said nearly 90% of Bangladesh's cigarette market is dominated by low- and mid-priced brands, making tobacco products widely affordable.
To address the issue, researchers proposed merging the existing low and medium cigarette price tiers and setting a minimum retail price of Tk100 for a pack of 10 sticks.
They also suggested imposing a specific excise tax of Tk4 per 10-stick pack across all cigarette price tiers.
The proposal was jointly developed by Economics for Health, the World Health Organization (WHO), Campaign for Tobacco-Free Kids (CTFK), Vital Strategies and the Institute of Health Economics at the University of Dhaka.
Researchers estimate the reform could generate about Tk44,000 crore in additional tax revenue compared with the previous fiscal year. Modelling also suggests higher tobacco prices could prevent around 400,000 adolescents from starting tobacco use.
Speaking at the workshop, Dr Shafiun N Shimul, professor and director of the Institute of Health Economics at the University of Dhaka, said the belief that higher tobacco taxes reduce government revenue is not supported by evidence.
Instead, he said stronger tobacco taxation can increase revenue while improving public health outcomes.
Hossain Zillur Rahman, executive chairman of PPRC, said tobacco control should be viewed as part of democratic governance.
He said the issue is not about penalising smokers but about using policy tools such as taxation, sales regulation and advertising restrictions to protect public welfare.
