Merging low and medium cigarette tiers and introducing a specific tax could generate Tk44,000 crore in additional revenue and prevent 4 lakh premature deaths, the Anti-Tobacco Media Alliance (ATMA) said at a pre-budget discussion at the National Board of Revenue (NBR).
ATMA proposed merging the low and medium tiers of cigarettes into a single tier, setting the minimum retail price at Tk100 per 10 sticks, Tk150 for the high tier and Tk200 or above for premium cigarettes.
They also recommended introducing a specific tax of Tk4 per 10-stick pack on top of the existing 67 per cent supplementary duty.
According to ATMA, these would generate approximately Tk44,000 crore in additional revenue compared to the current fiscal year, while preventing around 4,00,000 premature deaths in the long term by curbing smoking.
Due to the lack of effective price increases, the inflation-adjusted real prices of cigarettes and other tobacco products are declining, making them cheaper relative to essential commodities.
World Health Organization (WHO) 2025 data suggest the price of the most sold cigarette brands in Bangladesh remains lower than in Sri Lanka, the Maldives, Bhutan, Nepal and India.
To effectively increase tobacco product prices, 69 countries worldwide, including India, Thailand and Turkey, have already introduced specific taxes alongside the ad valorem system. Specific taxes are highly effective in raising the minimum price of tobacco products, and this method is comparatively easier for tax collection.
During the meeting, NBR Chairman Md Abdur Rahman Khan said, “Increasing tobacco taxes and prices reduces cigarette consumption, as evidenced by the NBR. Accordingly, further increases in taxes and prices will be considered in the future.”
ATMA further proposed setting a uniform price and tax rate for 20-stick filtered and non-filtered bidis at Tk30 with a 50 per cent supplementary duty.
For zarda and gul, they proposed fixing retail prices at Tk60 and Tk30 per 10 grams, respectively, with a 60 per cent supplementary duty. They also recommended retaining 15 per cent VAT and a 1 per cent health development surcharge on all tobacco products.
In Bangladesh, 35.3 per cent of adults use tobacco, and nearly 2,00,000 people die each year due to tobacco use.
In the 2024-25 fiscal year, the health and environmental damages caused by tobacco use amounted to Tk87,000 crore, which is double the revenue generated from this sector.
ATMA participants at the pre-budget discussion included Daily Janakantha Chief Reporter Kawser Rahman, Daily TIMES of Bangladesh Head of Online (Bangla) Md Monir Hossain Liton, Bangla Tribune Business Incharge Md Shafiqul Islam, ATMA Convener Murtuza Haider Liton and ATMA Co-conveners Nadira Kiran and Mizan Chowdhury.
