Research and advocacy organisation PROGGA (Knowledge for Progress) and the Anti-Tobacco Media Alliance (ATMA) have called on policymakers to reduce the current four-tiered cigarette price system to three tiers in the upcoming national budget for FY 2025-26. The move, they argue, would generate significant government revenue and discourage smoking among vulnerable groups, such as youth and low-income populations.
Speaking at a pre-budget press conference held at the Tofazzal Hossain Manik Miah Conference Hall of the National Press Club, experts stressed that the current four-tiered price system hinders effective tax and pricing measures. They proposed merging the low and medium tiers into one, with prices set at Tk 90 for 10 sticks, while retaining the price of high-tier cigarettes at Tk 140 and raising premium-tier prices to Tk 190 for 10 sticks.
Dr. Mahfuz Kabir, Research Director of the Bangladesh Institute of International and Strategic Studies (BIISS) and Member of the Local Government Reform Commission, highlighted the potential benefits of the proposal. “More than 80% of cigarette users belong to the low and medium tiers. Merging these tiers will increase revenue and reduce smoking prevalence, contributing to the government's ongoing reform projects,” he said.
Daulat Akter Mala, President of the Economic Reporters' Forum (ERF), emphasized the health implications of the proposal. "The government should ensure tobacco products are beyond the purchasing capacity of the population to protect public health," she said.
The press conference also showcased an analysis of price hikes for essential commodities compared to cigarettes. Between July 2021 and July 2023, prices of essential goods such as loose sugar and potatoes increased by 89% and 87%, respectively, while cigarette prices rose by only 6–15%.
PROGGA and ATMA proposed additional tax measures, including supplementary duties of 67% on all cigarette tiers and retail prices of BDT 25 for 25 non-filtered bidi sticks and BDT 20 for 20 filtered bidi sticks, with a 45% supplementary duty. For smokeless tobacco, they suggested retail prices of Tk 55 for 10 grams of jarda and Tk 30 for 10 grams of gul, followed by a 60% supplementary duty.
Speakers noted that implementing these proposals could generate Tk 20,000 crore in additional revenue while preventing premature deaths of 1.7 million people, including 900,000 youths, and mitigating the economic burden of tobacco use, which costs the country Tk 30,560 crore annually.
Among the speakers were Mortuza Haider Liton, Convener of ATMA, Mizan Chowdhury, Co-Convener of ATMA, and ABM Zubair, Executive Director of PROGGA. The event was hosted by Nadira Kiron, Co-Convener of ATMA, while Md. Hasan Shahriar, Head of Tobacco Control at PROGGA, presented the budget proposals.
Tobacco claims 161,000 lives annually in Bangladesh, underscoring the need for immediate and effective measures to curb its use and mitigate its impact on public health and the economy.
