The Anti-Tobacco Media Alliance (ATMA) has called for reducing the existing four-tier pricing system for cigarettes to a three-tier system to strengthen the effectiveness of tobacco pricing and tax measures. The demand was raised during a pre-budget meeting for FY 2025-26 with the National Board of Revenue (NBR) held today at the NBR Conference Room.
The meeting was chaired by Md. Abdur Rahman Khan, chairman of the NBR, reads a press release.
ATMA proposed merging the low and medium price tiers into a single category, citing the minimal price difference between the two tiers as a key reason for smokers easily switching between them. This reform, they argued, would close a critical loophole, discouraging smoking among low-income groups and youths while promoting public health. ATMA suggested setting the price for 10 sticks of the merged tier at Tk90.
NBR Chairman Md. Abdur Rahman Khan expressed openness to the proposal and indicated that he would consider reducing the tiers to three while increasing prices. He also acknowledged the feasibility of ATMA and PROGGA’s proposal, which could generate an additional Tk20,000 crore in revenue by reforming the tobacco tax structure.
ATMA highlighted that the prices of tobacco products in Bangladesh remain alarmingly low compared to essential commodities. An analysis by the Department of Agricultural Marketing revealed significant price hikes in essentials like sugar (89%), potatoes (87%), and flour (75%) between July 2021 and July 2023. In contrast, cigarette prices increased by only 6–15% during the same period, making them increasingly affordable to the youth and the poor.
ATMA proposed additional pricing reforms for FY 2025-26, including: Retaining the retail price for high-tier cigarettes at Tk140 for 10 sticks and increasing premium cigarette prices to Tk190 for 10 sticks; setting prices for non-filtered bidi at Tk25 for 25 sticks and filtered bidi at Tk20 for 20 sticks, with a 45% supplementary duty (SD); Setting retail prices for 10 grams of smokeless tobacco products (jarda and gul) at Tk55 and BDT 30, respectively, with a 60% SD.
ATMA also urged policymakers to retain the existing 67% supplementary duty on all cigarette tiers, 15% VAT on tobacco products, and a 1% health development surcharge.
According to ATMA, implementing these proposals would not only enhance revenue collection but also prevent the premature deaths of 1.7 million Bangladeshis, including nearly 900,000 youths. The additional revenue of BDT 20,000 crore could support the government in meeting revenue targets and improving public health outcomes.
Currently, 37.8 million adults in Bangladesh use tobacco products, both smoked and smokeless, leading to 161,000 deaths annually. In the fiscal year 2017-18, tobacco-related costs, including medical expenses and loss of productivity, amounted to BDT 30,560 crore.
The ATMA delegation at the meeting included prominent figures such as Kawser Rahman, City Editor of The Daily Janakantha, Sazzadur Rahman, Deputy Editor of The Business Standard, Mortuza Haider Liton, Convener of ATMA, and Mizan Chowdhury, Co-convener of ATMA. The alliance emphasized the urgency of adopting these measures to safeguard public health and achieve sustainable development goals.