Experts advocate for cigarette price hike to deter smoking

Merging the lower and middle tiers of cigarette pricing and increasing their prices in the upcoming 2025-26 fiscal budget would discourage smoking among the poor population and the younger generation, experts have said. 

They highlighted these issues on the final day of a two-day journalist workshop titled "Tobacco Tax and Pricing Measures: Budget 2025-26," held at the BIP Conference Room in the capital today (13 March).

The experts pointed out that the four-tier cigarette pricing structure (low, medium, high, and premium) is preventing the tobacco tax and pricing measures from functioning effectively. In particular, as the prices of low and medium-tier cigarettes are quite similar, consumers have the option to choose between them, they said. 

If the low and medium tiers are merged and the price is increased in the upcoming budget, it would discourage smoking among the poor population and the younger generation, argued the experts. 

The workshop highlighted that if the tax and pricing proposals of anti-tobacco advocates are implemented, it will not only reduce smoking but also generate an additional Tk20,000 crore in revenue. Moreover, in the long term, this measure could prevent the premature deaths of over 17 lakh people, including approximately 9 lakh young individuals.

The experts said tobacco products in Bangladesh are extremely cheap and are becoming even more affordable compared to essential commodities. 

An analysis of the average retail prices of essential goods in seven major cities (Dhaka, Chattogram, Rajshahi, Khulna, Sylhet, Barishal, and Rangpur)—based on data from the Department of Agricultural Marketing—revealed significant price increases between 4 July 2021 and 4 July 2023. 

During the period, the price of loose sugar increased by 89%, potatoes by 87%, loose flour by 75%, pangas fish by 47%, eggs by 43%, soybean oil by 34%, powdered milk by 30%, and broiler chicken by 27%.

In contrast, the price of cigarettes across different tiers increased by only 6% to 15% during the same period. As a result, the affordability of tobacco products continues to encourage consumption, particularly among the youth and low-income populations.

Some 50 journalists participated in the workshop organised by the research and advocacy organisation PROGGA and the Anti-Tobacco Media Alliance (Atma).

Kawsar Rahman, city editor of Dainik Janakantha; Sajjadur Rahman, deputy editor of The Business Standard; Liton Haider, convener of Atma; and ABM Zubair, executive director of PROGGA, spoke, among others, at the workshop.