PROGGA, ATMA propose 3 measures to cut tobacco use and raise revenue

PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA) today (20 April) have urged reducing the number of cigarette price tiers, introducing a specific tax system, and increasing the prices of all tobacco products in the upcoming 2026-27 fiscal year budget.

The two organisations presented these recommendations at a pre-budget press conference held at the Tofazzal Hossain Manik Miah Hall of the National Press Club.

The proposals for the upcoming national budget include merging the low and medium tiers into one with a retail price of Tk100 per 10 sticks, setting high-tier cigarettes at Tk150 per 10 sticks and premium cigarettes at Tk200 or above per 10 sticks. They also proposed retaining the existing 67% supplementary duty and introducing a specific tax of Tk4 per pack of 10 sticks.

Supporting the proposals, Dr Mahfuz Kabir, Research Director of Bangladesh Institute of International and Strategic Studies (BIISS) said, "Currently, the majority of cigarette users consume low- and medium-tier cigarettes. If these two tiers are merged and the number of cigarette price tiers is reduced from the existing four to three, it will especially discourage smoking among young people and low-income groups."

Dr Rumana Haque, professor of Health Economics and Health Systems in the Department of Economics at the University of Dhaka said, "If the proposed reforms to the cigarette tax structure are implemented, it will not only protect public health but also create an opportunity to address the existing pressure on the country's economy through increased revenue collection."

Ayesha Suhaima Rab, Program Associate, Centre for Policy Dialogue (CPD) said, "Introducing specific taxation would make the existing tobacco tax structure simpler and more effective."

Experts also recommended that the government introduce uniform price and taxes for both filtered and non-filtered bidi and the retail price for 20 sticks of bidi should be Tk30, followed by a 50% SD. For jarda and gul, it was proposed to set retail prices at Tk60 and Tk30 per 10 grams respectively, and to impose a 60% supplementary duty. At the same time, it was demanded to retain a 15% VAT and a 1% health development surcharge on all tobacco products.

The speakers said the proposals could generate Tk85,000 crore in revenue, prevent 370,000 premature deaths, discourage around 372,000 youths from starting smoking and encourage nearly 500,000 adults to quit.

Notably, tobacco causes nearly 200,000 deaths annually in Bangladesh and resulted in an economic loss of Tk87,000 crore in FY 2024-25, compared to Tk41,000 crore in sector revenue.