A national-level dialogue held at the Sheraton Hotel in Dhaka on Tuesday emphasised the urgent need to increase tobacco taxes to safeguard public health and boost government revenue.
The event, organised by the Shastho Shurokkha Foundation, brought together policymakers, academics, civil society members, and journalists to discuss strategies for effective tobacco taxation in the upcoming fiscal year, reads a press release.
Bangladesh currently has the highest tobacco usage rate in South Asia, with 35.3% of its population using tobacco products. Each year, approximately 161,000 people die prematurely from tobacco-related diseases. Alarmingly, the government spends 34% more on treating tobacco-induced illnesses than the revenue generated from the tobacco industry, according to the keynote presentation.
Proposed Measures
The dialogue proposed several key reforms for the 2025-26 fiscal year to curb tobacco use. One of the primary recommendations was consolidating the current four-tier cigarette tax system into three tiers by merging the lower and middle tiers, setting a minimum price of 80 taka for a 10-cigarette pack. Additionally, it suggested introducing a 67% excise duty across all tiers of cigarettes to ensure a uniform tax structure. To further discourage tobacco consumption, the proposal included raising the minimum prices for high-tier and premium-tier cigarette packs to 130 taka and 180 taka, respectively.
These measures, if implemented, could prevent approximately 1.6 million premature deaths, deter 1.6 million youths from starting to smoke, and encourage 2.3 million adults to quit, while generating an additional 60 billion taka in government revenue.
Dr. Md. Shibbir Ahmed Osmani, Joint Secretary (Public Health Wing), Ministry of Health and Family Welfare, stressed the importance of aligning tax increases with inflation and income growth to reduce the affordability of tobacco products. He also advocated for narrowing the price gap between cigarette tiers to prevent consumers from switching to cheaper alternatives.
Md. Shahidul Islam, former Member of the National Board of Revenue (NBR), criticized the existing tobacco tax structure as flawed and insufficient to deter youth and low-income groups from tobacco use. "Higher taxes are internationally recognized as the most effective way to reduce tobacco consumption," he said.
Roksana Khan, Joint Secretary, Internal Resources Division, Ministry of Finance, highlighted the potential for revenue growth by replacing the multi-tier ad valorem tax system with a uniform or mixed tax system.
Dr. Nizam Uddin Ahmed, Executive Director of the Shastho Shurokkha Foundation, called for a smoke-free society to ensure a healthier nation. Citing World Health Organization data, he noted that tobacco use causes 8 million deaths annually, including nearly 900,000 due to secondhand smoke.
Professor Dr. Golam Mahiuddin Faruk, President of the Bangladesh Cancer Society, linked tobacco use to significant health risks, including a 57% higher chance of heart disease and a 109% higher risk of various cancers.
Sushant Sinha, Special Correspondent at Ekattor TV, emphasized that making tobacco products unaffordable is the most effective way to control use, particularly among adolescents and low-income groups. "Research shows that a 10% price increase can reduce tobacco use by 7.1% in Bangladesh," he added.
A Call to Action
The dialogue concluded with a collective call to the caretaker government to prioritize tobacco taxation in the 2025-26 budget as a critical measure to protect public health and generate revenue.
Attendees included academics, researchers, representatives from government and non-government organizations, and members of the media, underscoring a broad consensus on the urgency of tobacco tax reform.
