Govt committed to raising tobacco taxes to protect public health: Ziauddin Hyder
Health experts say stronger tax measures on tobacco products could generate an additional Tk4,400 crore in revenue while discouraging smoking among adults and youth
The government remains committed to strengthening tobacco control measures, including increasing tobacco product prices through the national budget to protect public health, Dr SM Ziauddin Hyder, special assistant to the prime minister on health affairs, said today (24 June).
The remarks came at a seminar titled "Protecting Public Health from the Harmful Effects of Tobacco: Challenges and Way Forward", jointly organised by the Doctors Association of Bangladesh (DAB) and the Development Organisation of the Rural Poor (DORP) at the BMA Auditorium in Dhaka.
He noted that Prime Minister Tarique Rahman, in a message marking World No Tobacco Day, reaffirmed the government's commitment to protecting children, adolescents and future generations from the harmful effects of tobacco and nicotine.
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"The period leading up to the finalisation of the FY2026-27 national budget presents an important opportunity to adopt effective public health measures," he said.
Presenting the keynote paper, Zeba Afroza said public health and tobacco control experts had proposed reducing the existing four-tier cigarette pricing structure to three tiers to simplify tax administration and prevent smokers from switching to cheaper alternatives.
Under the proposal, the low and medium cigarette tiers would be merged, with the retail price of a 10-stick cigarette pack set at Tk100. Experts also recommended retaining the existing 67% supplementary duty across all tiers while introducing a specific tax of Tk4 per 10-stick pack.
According to Afroza, such measures would significantly reduce the affordability of tobacco products, particularly among young people.
Dr Shafiun Nahin, director of the Institute of Health Economics at the University of Dhaka, criticised the proposed budget's tobacco tax measures, saying the increase in low-tier cigarette prices was too small to have a meaningful impact on consumption.
"The price of a 10-stick pack of low-tier cigarettes has increased from Tk60 to Tk62, despite the fact that nearly 75% of cigarettes sold in Bangladesh fall into this category," he said.
With inflation remaining above 9%, a Tk2 increase per pack is unlikely to discourage tobacco use, he added.
Nahin also argued that the proposed retail price of Tk6.2 per cigarette remains below prevailing market prices, where low-tier cigarettes are already being sold for around Tk7 per stick.
As a result, tobacco companies could earn an additional Tk0.8 per stick in untaxed profit, he said.
Citing FY2023-24 sales data, Nahin said Bangladesh sold 68.89 billion low-tier cigarettes during the year. Based on the projected additional profit margin, tobacco companies could earn roughly Tk5,512 crore in extra profits, representing a significant loss of potential tax revenue for the government.
The speakers welcomed the government's recent amendment to the tobacco control law and expressed hope that stronger fiscal measures would be adopted in line with the government's election commitments.
As the lead discussant, DAB Secretary General Dr Md Zahirul Islam warned against imposing taxes on nicotine pouches, nicotine granules and heated tobacco products (HTPs) without stricter regulation.
He argued that taxation could inadvertently legitimise such products and facilitate their expansion in the market, increasing the risk of nicotine addiction among young people.
DAB President Prof Dr Harun Al Rashid urged the government to reconsider the tax and price structure of low-tier cigarettes and smokeless tobacco products in the upcoming budget.
He said adopting recommendations made by public health experts could generate around Tk4,400 crore in additional government revenue while encouraging nearly 500,000 adult smokers to quit, preventing 372,000 young people from taking up smoking and averting almost 400,000 premature deaths over the long term.
The seminar was welcomed by DORP Founder and Chief Executive Officer AHM Noman and moderated by the organisation's Deputy Executive Director Mohammad Zobair Hasan.
Among others present were Iqbal Masud, director of the Health Sector of Dhaka Ahsania Mission; Prof Dr Sohel Reza Choudhury, head of the Epidemiology and Research Department at the National Heart Foundation Hospital and Research Institute; members of DAB; and youth representatives.
