ATMA calls for reducing cigarette price tiers to three
The demand was raised during a pre-budget meeting for FY 2025-26 at the NBR Conference Room today
The Anti-tobacco Media Alliance (ATMA) has urged the National Board of Revenue (NBR) to merge the low and medium cigarette price tiers to make tobacco tax measures more effective.
The demand was raised during a pre-budget meeting for FY 2025-26 at the NBR Conference Room today (18 March), chaired by NBR Chairman Md Abdur Rahman Khan.
ATMA argued that the narrow price gap between low and medium-tier cigarettes allows consumers to switch easily between them, undermining the impact of price increases.
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To address this, they proposed merging these two tiers and setting the price at Tk90 for 10 sticks. They also recommended maintaining the retail price of high-tier cigarettes at Tk140 for 10 sticks and increasing the price of premium-tier cigarettes to Tk190.
In response, the NBR chairman stated that he would consider reducing the number of price tiers to three while also increasing cigarette prices.
He also acknowledged proposals from ATMA and PROGGA that suggest raising an additional Tk20,000 crore in revenue through reforms in the tobacco tax structure.
ATMA further proposed a 67% supplementary duty (SD) on all cigarette tiers.
For non-filtered bidi, they recommended setting the price at Tk25 for 25 sticks, and for filtered bidi, Tk20 for 20 sticks, both with a 45% SD.
In the case of smokeless tobacco, they suggested pricing 10 grams of jarda at Tk55 and gul at Tk30, with a 60% SD.
They also called for retaining a 15% VAT on retail prices of tobacco products and maintaining the existing 1% health development surcharge (HDS).
ATMA highlighted that cigarette prices in Bangladesh remain low compared to the rising costs of essential commodities.
An analysis of retail prices in seven metropolitan cities between July 2021 and July 2023 showed significant price hikes for essentials, such as sugar (89%), potatoes (87%), and flour (75%), while cigarette prices increased by only 6-15%.
ATMA warned that this growing affordability makes tobacco more accessible to low-income groups and youth, posing a serious public health risk.
ATMA stated that implementing their proposals would help the government meet revenue targets while preventing premature deaths.
Bangladesh has 37.8 million adult tobacco users, and tobacco-related illnesses claim 161,000 lives annually. In 2017-18, tobacco use cost the national economy Tk30,560 crore in medical expenses and productivity losses.
The ATMA delegation at the meeting included Kawser Rahman, city editor of The Daily Janakantha; Sazzadur Rahman, deputy editor of The Business Standard; Mortuza Haider Liton, ATMA convener; and Mizan Chowdhury, ATMA co-convener.
