Public health experts and economists have urged the government to continue raising tobacco taxes to curb the harmful effects of smoking, targeting a 90% state share of consumers’ spending on tobacco products.
Tobacco taxation in Bangladesh is clouded by six persistent myths that should be dispelled from a cost–benefit perspective, said Professor Shafiun N Shimul, director of the Institute of Health Economics at the University of Dhaka, in his keynote at a national dialogue titled “Reimagining an Effective Tobacco Tax System in Bangladesh” on Saturday.
He said the myths include claims that higher tobacco taxes hurt the poor, fuel illicit trade, reduce state revenue, push smokers towards cheaper bidis, and ultimately harm tobacco farmers and jobs.
Bangladesh currently captures more than 82% of consumer spending on tobacco through supplementary duty, value-added tax and surcharge, following years of steady tax increases.
Another misconception is that Bangladesh’s tobacco tax rate is already high, said Shafiun N Shimul at the dialogue organised by the Power and Participation Research Centre (PPRC) in the capital.
He said rising taxes, which translate into higher cigarette prices, have not been enough to reduce smoking because they have failed to outpace the growth in consumers’ purchasing power and inflation.
The country now needs a strong roadmap to raise the tax burden to 90% after 2030 to mitigate tobacco’s severe impact on public health.
According to the Tobacco Atlas, tobacco caused more than 1.3 lakh deaths in Bangladesh in 2021—nearly 22% of all deaths that year.
Tobacco-related illnesses and deaths impose an annual economic burden of Tk86,000 crore, according to a joint study by Johns Hopkins University in the United States and Shimul’s institute.
Bangladesh remains one of the countries where cigarettes are most affordable, contributing to high consumption, with more than 35% of adults using tobacco products, according to the Global Adult Tobacco Survey 2017.
Ninety percent of all cigarettes consumed are low-priced, as many smokers shift to cheaper options when higher taxes push premium brands beyond their reach instead of quitting altogether.
Experts blamed the tier-based tax structure for keeping cheap cigarettes widely accessible and recommended imposing a specific uniform tax on all cigarettes.
The tiered system has left some cigarettes costing as little as Tk6 per stick—an unusually low price globally. This should be increased to at least Tk10 per stick to curb mass affordability, Professor Shafiun N Shimul told TIMES of Bangladesh.
Speakers said that high taxes do not create black markets on their own and that weaknesses within revenue administration are responsible for illicit cigarette trade.
Civil society representatives said higher taxes would be a “win–win” solution, reducing consumption by 25–30% while increasing government revenue and easing pressure on the public health system.
In his closing remarks, PPRC Chairman Hossain Zillur Rahman called for an effective reform framework, emphasising that tobacco control must be seen as a moral, social and economic necessity.
“Many tobacco-growing districts remain among the country’s poorest,” he said, urging stronger control over tobacco cultivation.
He also warned against “advocacy traps” that are disconnected from the realities on the ground and stressed the need for a balanced, evidence-based reform agenda that prioritises the wellbeing of future generations.
Speakers further called for raising awareness about the personal and national damage caused by tobacco products to protect younger generations.
Echoing others, former commissioner of taxes M M Fazlul Haque Arif called for a renewed approach to revenue mobilisation that does not compromise long-term national interests.
