Experts urge tobacco tax reform in FY27 budget to curb non-communicable disease, boost revenue

Leading physicians and public health experts in Bangladesh have called for comprehensive tobacco tax reform in the upcoming FY2026–27 national budget, emphasising its critical role in reducing non-communicable diseases (NCDs) and strengthening public finances.

The call was made at a seminar titled "Increasing Tobacco Taxes for the Prevention of Non-Communicable Diseases: Budget FY2026–27 Perspective", organised by the National Heart Foundation of Bangladesh today (29 April).

Delivering the welcome address, Professor Fazila-Tun-Nesa Malik, secretary general of the organisation, highlighted the urgency of prioritising tobacco control as a key public health strategy.

The keynote paper was presented by Professor Dr Sohel Reza Choudhury, head of the Epidemiology and Research Department at the National Heart Foundation Hospital and Research Institute.

The keynote presentation noted that Bangladesh has the highest tobacco use prevalence in South Asia at 35.3% (GATS 2017).

Tobacco use causes nearly 200,000 premature deaths annually in the country. In 2024 alone, the economic cost of tobacco-related health and environmental damage reached approximately Tk87,000 crore, more than double the revenue generated from the sector.

Speakers emphasised that increasing tobacco taxes is the single most effective measure to reduce consumption. However, Bangladesh's current multi-tiered tax structure remains complex and ineffective, allowing tobacco products to remain affordable and widely accessible.

The seminar proposed merging the low- and medium-tier cigarette categories and setting a minimum retail price of Tk100 per 10-stick pack.

It also recommended prices of Tk150 for high-tier cigarettes and Tk200 for premium cigarettes, along with a uniform specific tax of Tk4 per pack across all tiers.

Professor Dr Golam Mohiuddin Faruque, president of the Bangladesh Cancer Society, stated that the existing tax structure enables users to switch between price tiers, undermining cessation efforts.

He noted that the proposed reform would significantly reduce tobacco use and discourage smoking initiation among young people.

Public health expert Dr Mushtaq Hossain said higher tobacco taxes are an effective policy tool for both public health protection and sustainable financing.

He added that implementing the proposed reforms could encourage around 500,000 adults to quit smoking, preventing approximately 185,408 premature deaths among adults and 185,335 among young people in the long term.

Additionally, the government could generate an estimated Tk44,000 crore in additional revenue.

Dr Md Zahidul Islam Shakil, secretary general of the Doctors' Association of Bangladesh, warned that tobacco use is driving a surge in chronic respiratory diseases, lung cancer, and other NCDs.

He stressed that stronger taxation measures are essential to protect future generations.

Md Akhteruzzaman, director general of the National Tobacco Control Cell, reaffirmed the government's commitment to tobacco control.

He said efforts are underway to make tobacco products less affordable than essential commodities and confirmed that the NTCC is working towards implementing a specific tax system within the current fiscal year.

The seminar was chaired by Brig Gen (Retd) Professor Md Yunusur Rahman, director of the National Heart Foundation Hospital and Research Institute.

Among those present were Divisional Commissioner of Dhaka Sharf Uddin Ahmed Choudhury; Professor Dr M Mostafa Zaman, executive editor of the BMU Journal; economist Taifur Rahman; Dr Kazi Saifuddin Bennoor, joint secretary of the Bangladesh Lung Foundation; and Professor Syed Akram Hossain, chairman of Clinical Oncology at Bangladesh Medical University.

Speakers concluded that implementing the proposed tobacco tax reforms would not only significantly increase government revenue but also substantially reduce tobacco use and improve public health.