Call for higher tobacco taxes to improve public health
Key recommendations included consolidating cigarette tiers, imposing a 67% excise duty, and raising prices to curb tobacco consumption
A national dialogue advocating increased tobacco taxes to enhance public health and government revenue was held at the Sheraton Hotel, organised by the Shastho Shurokkha Foundation.
The event gathered citizens, students, academics, and policymakers, highlighting the urgency of reforming tobacco taxation.
Key recommendations included consolidating cigarette tiers, imposing a 67% excise duty, and raising prices to curb tobacco consumption, according to a press release.
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The keynote presentation revealed that Bangladesh has the highest tobacco use rate in South Asia, at 35.3%. Annually, approximately 161,000 adults die prematurely due to tobacco-related diseases. Moreover, the government spends 34% more on treating tobacco-induced illnesses than the revenue it generates from the tobacco industry.
To reduce tobacco consumption and mitigate the damages caused by tobacco, the meeting proposed several recommendations for the upcoming 2025-26 fiscal year's budget, including a significant increase in tobacco taxes.
"Increasing tobacco taxes is a proven strategy to reduce use and save lives," said Md Shahidul Islam, former NBR member.
The minimum price for a pack of 10 cigarettes in this tier should be set at 80 taka. Increasing excise duty: Imposing a 67% excise duty on all tiers of cigarettes. Raising prices for higher tiers: Setting a minimum price of 130 taka for a pack of 10 high-tier cigarettes and 180 taka for a pack of 10 premium-tier cigarettes.
It was highlighted that implementing these proposed tobacco tax increases would prevent approximately 1.6 million premature deaths, deter about 1.6 million youth from starting to smoke, encourage around 2.3 million adult smokers to quit, and generate approximately Tk60 billion in revenue in the 2025-26 fiscal year.
Dr Shibbir Ahmed Osmani of the Ministry of Health stressed aligning taxes with inflation to decrease accessibility, while Roksana Khan from the Finance Ministry suggested introducing a unified tax system.
