Tobacco prices: To hike or not to hike? | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Tuesday
June 10, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
TUESDAY, JUNE 10, 2025
Tobacco prices: To hike or not to hike?

Panorama

Sabyasachi Karmaker
19 February, 2022, 10:10 am
Last modified: 19 February, 2022, 04:07 pm

Related News

  • FY26: Unchanged tobacco tax in proposed budget may cost government Tk20,000cr, say experts
  • Budget 2025-26: Tobacco tax can address revenue shortfall
  • Health adviser stresses need for tobacco-free nation to curb disease
  • CA for making youth aware of tobacco's harmful effects
  • Health Reform Commission to submit report after reviewing proposed tobacco law amendments

Tobacco prices: To hike or not to hike?

There is a strong call for raising tobacco prices, but can this move alone curb tobacco consumption?

Sabyasachi Karmaker
19 February, 2022, 10:10 am
Last modified: 19 February, 2022, 04:07 pm
Tobacco prices: To hike or not to hike?
Illustration: TBS

Before every financial year, there is an obvious discussion about hiking the price of tobacco products and imposing specific taxes. This year is no different. 

On 16 February, in a pre-budget meeting, Anti Tobacco Media Alliance (ATMA) asked the government to hike the price of tobacco products and impose higher taxes. However, the NBR chairman, also present at the meeting, said that simply hiking tax rates and prices will not help reduce tobacco consumption and safeguard public health.

ATMA stated that if their demands are implemented, the government will earn an additional revenue of Tk9,200 crore. At the same time, premature death of 4,45,000 adults and 4,48,000 young people will be prevented.

For the past decades, as well as incremental tax increases, there have been other initiatives taken by the government to curb tobacco consumption like awareness programmes and banning of all forms of advertisements for tobacco-related products. 

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

For the past few years, anti-tobacco organisations across the country have been calling for increased tobacco prices and the NBR has been complying with the demands by imposing incremental taxes on related products on a regular basis.

According to ATMA, tobacco use has remained relatively similar in recent years. Cigarettes, vapes, bidis, and other smokeless tobacco products are readily available in every corner of Bangladesh.

Shafiqul Islam, Head of Programmes of Vital Strategies, a leading INGO working towards building awareness against tobacco consumption, said, "The NBR chairman said that if the price increases, both the tobacco industry and the tax authorities are happy. The main problem here is that the price is being increased gradually. As a result, people are adapting to these small price increases. This has a limited effect on consumption. The price of low-tier cigarettes will have to be increased a lot at a time."

He added that the prices are very high in the countries that have been able to control the use of tobacco. 

Even the cheapest cigarette brand in neighbouring India is more than twice as expensive compared to that of Bangladesh. 

Between 2016 to 2018, Columbia hiked cigarette prices threefold, and consumption dropped 34%.

However, raising prices is not the only way to reduce the use of tobacco. 

"Easy access is a big issue in Bangladesh. Cigarette shops are everywhere where you can buy a single cigarette. Selling a single cigarette is strictly illegal in most developed countries," said Shafiqul Islam.

Only last December, New Zealand, in a sweeping clampdown on smoking cigarettes, declared that anyone born after 2008 cannot buy any tobacco products ever. By banning the sale of tobacco to its future generations, the country bids to phase out smoking altogether.

In Australia, the smoking rate of adults has almost halved since 1995. The country was successful in curbing tobacco consumption through a three-pronged approach of denormalising (e.g. through price increases, bans on sales to minors and restrictions on areas where smoking is permitted), education (e.g. at school and through mass media campaigns), and disruption to de-glamourise smoking (such as through the use of graphic warning labels and tobacco advertising bans).

Bangladesh aims to be a tobacco-free country by 2040, a goal set out in 2016 by the government of Bangladesh. Six years down the line, the question of how much the situation at the ground level has really changed, remains.

The purchasing power of the Bangladeshis has risen significantly. In that case, a small increase in the price of cigarettes does not amount to much. 

On the other hand, the tobacco industry contributes a lot to the economy. British American Tobacco (BAT) is the highest corporate taxpayer in the country. In fiscal year 2020-21, BAT Bangladesh deposited around Tk25,000 crore to the National Exchequer as Value Added Tax (VAT) and Supplementary Duty (SD).

Thanks to the contribution, the tobacco industry has a say when it comes to formulating policies. The tobacco industry interferes in national policymaking. Even during the Covid-19 lockdowns, they have lobbied to get permission for continued production and distribution.

 "The tobacco companies pay a huge amount of tax. This sector contributes more than many other sectors. This is true. And that's why we have to find alternatives," added Shafiqul, who is also a former additional secretary to the government.

Some experts argue that if the tobacco industry is affected, the government will lose a lot of revenue. However, Shafiqul Islam thinks that this sort of argument is in line with an economic perspective – where public health concerns are largly ignored.

Mortuza Haider Liton, the convener of ATMA, also agreed on the effect of price hike.

Hiking prices alone is not enough to curb tobacco consumption. But it is the most effective method. It is universally proven that an increase in price reduces consumption. Especially, when the price of tobacco is high, young people are discouraged from consuming tobacco, and tobacco addicts, especially the poor, are encouraged to quit

Mortuza Haider Liton, convener of Anti Tobacco Media Alliance

According to the Global Adult Tobacco Survey (GATS) study report of 2017, 35% of all adults in Bangladesh use at least one form of tobacco product. The number is 37.8 million people in total. 46% of men and 25.2% of women consume tobacco. 

The prevalence of tobacco use among adults has decreased substantially from 43.3% in 2009 to 35.3% in 2017. While there is an overall decline in tobacco use, the median number of cigarettes smoked by a smoker per day increased from 6.4 to 7.6 sticks. On the other hand, the median number of bidis smoked decreased by 8.4%.


Sabyasachi Karmaker/Journalist. Illustration: TBS
Sabyasachi Karmaker/Journalist. Illustration: TBS

 

Analysis / Features / Top News

Tobacco / tobacco consumption / Tobacco companies

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus leaves for a four-day visit to the United Kingdom from the Dhaka airport on 9 June 2025. Photo: CA Press Wing
    CA Yunus leaves for UK; discussion expected on renewable energy investment, laundered money
  • Donald Trump. Photo: Reuters
    Trump defends sending National Guard to LA as California governor to sue administration
  • California Governor Gavin Newsom. File Photo: REUTERS/Fred Greaves
    California Governor Newsom to sue Trump over National Guard deployment amid LA protests

MOST VIEWED

  • On left, Abdullah Hil Rakib, former senior vice president (SVP) of BGMEA and additional managing director of Team Group; on right, Captain Md Saifuzzaman (Guddu), a Boeing 787 Dreamliner pilot for Biman Bangladesh Airlines. Photos: Collected
    Ex-BGMEA SVP Abdullah Hil Rakib, Biman 787 pilot Saifuzzaman drown in boating accident in Canada
  • A photo showing the former president on his return to Dhaka today (9 June). 
Source: Collected
    Former president Abdul Hamid returns to Bangladesh from Thailand
  • File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar
    Dhaka: The city we never want to return to, but always do
  • Chief Adviser Muhammad Yunus leaves for a four-day visit to the United Kingdom from the Dhaka airport on 9 June 2025. Photo: CA Press Wing
    CA Yunus leaves for UK; discussion expected on renewable energy investment, laundered money
  • Inside the aid ship stormed by Israeli forces on 9 June 2025. Photo: BBC
    Israeli forces stormed aid boat carrying Greta Thunberg bound for Gaza: Freedom Flotilla Coalition
  • Enhanced surveillance at Ctg airport amid rising global Covid-19 cases
    Enhanced surveillance at Ctg airport amid rising global Covid-19 cases

Related News

  • FY26: Unchanged tobacco tax in proposed budget may cost government Tk20,000cr, say experts
  • Budget 2025-26: Tobacco tax can address revenue shortfall
  • Health adviser stresses need for tobacco-free nation to curb disease
  • CA for making youth aware of tobacco's harmful effects
  • Health Reform Commission to submit report after reviewing proposed tobacco law amendments

Features

File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

23h | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

2d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

5d | Panorama
(From left) Sadia Haque, Sylvana Quader Sinha and Tasfia Tasbin. Sketch: TBS

Meet the women driving Bangladesh’s startup revolution

5d | Panorama

More Videos from TBS

US and China to meet in London for trade talks

US and China to meet in London for trade talks

11h | TBS World
The forbidden point on Cox's Bazar beach is like a death trap

The forbidden point on Cox's Bazar beach is like a death trap

14h | TBS Today
Israeli forces seize Gaza aid boat carrying Greta Thunberg

Israeli forces seize Gaza aid boat carrying Greta Thunberg

16h | TBS World
Which way will the anti-immigration campaign in Los Angeles turn?

Which way will the anti-immigration campaign in Los Angeles turn?

16h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net