Economists and public health experts have recommended a comprehensive overhaul of the tobacco tax framework, suggesting that such reforms could generate an additional Tk44,000 crore in revenue for the government.
Alongside fiscal benefits, the experts emphasised that these reforms would significantly reduce tobacco consumption and prevent related deaths.
The recommendations were presented during a discussion at the National Press Club on Sunday.
The event was jointly organised by the research and advocacy organisation ‘Knowledge for Progress’ (PROGGA) and the ‘Anti-Tobacco Media Alliance’ (ATMA).
During the session, specialists called for reducing the number of price tiers for cigarettes, introducing a specific tax system, and raising the prices of all tobacco products. One key proposal was to merge the existing low and medium tiers of cigarettes, setting a retail price of Tk100 for every 10 sticks.
Additionally, the experts recommended increasing the price of high-tier cigarettes to Tk150 and premium-tier cigarettes to Tk200 or more per 10 sticks. They also urged the government to maintain the current 67 percent supplementary duty (SD) while introducing an additional Tk 4 specific tax per 10-stick packet.
Regarding other tobacco products, the speakers proposed a uniform price of Tk30 for both filtered and non-filtered 20-stick biri packets, alongside a 50 percent supplementary duty. For smokeless tobacco, the suggested prices were Tk60 for 10 grams of Jarda and Tk30 for 10 grams of Gul, with both products carrying a 60 percent supplementary duty.
The experts also advocated for maintaining the 15 percent VAT and the 1 percent Health Development Surcharge on all tobacco products.
The discussion featured contributions from Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS); Rumana Huq, Professor at the Department of Economics, University of Dhaka; and Dr Syed Abdul Hamid, Professor at the Institute of Health Economics.
Other notable speakers included Abu Jamil Faysal, newly elected President of the Public Health Association of Bangladesh; public health expert Dr Lenin Chowdhury; Zahirul Alam, Executive Director of Channel 24; ABM Zubayer, Executive Director of PROGGA; Mortuza Haider Liton, Convener of ATMA; and Nadira Kiron, Co-convener of ATMA.
