Anti-tobacco organisations PROGGA (Knowledge for Progress) and the Anti-Tobacco Media Alliance (ATMA) have expressed grave concern over the proposed national budget for the 2026-27 financial year, warning that it will make tobacco products more affordable and cause the government to miss significant revenue opportunities.
In a joint reaction following the budget presentation, the organisations noted that while the budget proposes marginal price increases for cigarettes, the prices and tax rates for biri, gul, and jarda remain unchanged. When adjusted for inflation and the 10.27 per cent increase in per capita income, the real prices of these products are set to decrease, effectively making them more accessible to the public.
According to a press release, cigarette price hikes labelled “marginal” The proposed budget raises the retail price of 10 sticks of low-tier cigarettes by only Tk2, setting the price at Tk62. This represents a mere 3.33 per cent increase, which falls significantly below the growth in per capita income.
Anti-tobacco advocates warn this will encourage cigarette use among the youth and low-income demographics, particularly as low-tier brands constitute roughly 75 per cent of the country’s cigarette market.
Price adjustments for other tiers are- medium tier increased to Tk92 from Tk80 (15 per cent hike), high tier increased to Tk160 from Tk140 (14.29 per cent hike), and premium tier increased to Tk210 from Tk185 (13.51 per cent hike).
PROGGA and ATMA argued that these increases remain marginal compared to the rising costs of essential commodities. Furthermore, they claimed that in the absence of structural reforms, tobacco companies will “pocket the lion’s share” of revenue generated by these hikes, enabling the industry to expand further.
The organisations have urged the government to merge the low and medium cigarette tiers, setting a price of Tk100 per 10 sticks. They also proposed the introduction of a specific excise tax of Tk4 per 10 sticks in addition to the existing 67 per cent supplementary duty (SD). According to their estimates, implementing these proposals would generate an additional Tk44,000 crore in revenue and prevent 400,000 premature deaths.
The budget’s failure to increase taxes on smokeless tobacco-jarda and gul, and biri is expected to heighten health risks for women and the poor, as these products become relatively cheaper.
The proposed budget also addresses emerging tobacco products, setting the price of 10 grams of nicotine pouches at Tk500 (with 40 per cent SD) and 10 sticks of heated tobacco at Tk210 (with 67 per cent SD). A 350 per cent SD has been imposed on the import of nicotine granules and pouches, and a “Track and Trace” method has been proposed to monitor production.
However, the organisations noted with regret that the Ministry of Health’s previous proposal to ban these products was not incorporated into the recently amended tobacco control law.
PROGGA’s Executive Director ABM Zubair said if the budget is passed in its current form, it will “render tobacco products even cheaper and more affordable,” leading to an increase in tobacco-related diseases.
Currently, tobacco use prevalence among Bangladeshi adults stands at 35.3 per cent, claiming 200,000 lives annually. The associated health and environmental toll costs the national economy nearly Tk87,000 crore every year. PROGGA and ATMA have called on policymakers to adopt their reform proposals to safeguard public health and maximise national revenue.
