Members of the Women MPs’ Forum Against Tobacco have called for a review of the proposed tax and pricing measures for low-tier cigarettes and smokeless tobacco products in the national budget for FY2026-27, arguing that the current structure could undermine public health goals and reduce potential government revenue.
The demand was raised at a post-budget discussion held at the LD Hall of the Jatiya Sangsad on Tuesday.
Participants were informed that public health and tobacco control experts had recommended simplifying the existing four-tier cigarette tax structure by reducing it to three tiers and adjusting prices accordingly.
Experts noted that the price gap between low-tier and medium-tier cigarettes remains too narrow, allowing consumers to switch to slightly cheaper brands when taxes increase in one category.
To address the issue, they proposed merging the low and medium tiers and setting the retail price of a 10-stick cigarette pack at Tk100. They also recommended retaining the existing 67 per cent supplementary duty on all cigarette categories while introducing a specific tax of Tk4 per 10-stick pack.
According to the discussion, 68.89 billion low-tier cigarette sticks were sold in Bangladesh during FY2023-24. With an additional profit margin of Tk0.80 per stick, tobacco companies could earn around Tk55.12 billion, or Tk5,512 crore, in untaxed profits, resulting in a substantial loss of potential tax revenue for the government.
Speakers also expressed concern that the proposed budget did not include the recommendation for a Tk4 specific tax on each 10-stick cigarette pack. They said maintaining the current 67 per cent supplementary duty without introducing a specific tax would allow tobacco companies to generate significant additional profits.
The forum urged the government to reconsider the proposed tax and pricing measures for low-tier cigarettes and smokeless tobacco products in line with recommendations from public health and tobacco control experts.
The discussion was chaired by Rasheda Begum Hira, vice-president of the Women MPs’ Forum Against Tobacco.
Among those present were Members of Parliament Newaz Halima Arly, Bilkis Islam, Farida Yeasmin, Sabira Sultana, Sunsila Jabrin, Ferdousi Ahmed, Jahrat Adib Chowdhury, Salina Sultana, Shcotara Akter, Rezeka Sultana, Nadia Pathan Papon, Momtaj Alo, Helen Jerin Khan and Suraia Zarin.
Shahin Akter Dolly, executive director of Nari Maitree, also attended the event.
Participants unanimously called for a revision of the proposed tobacco tax measures, saying stronger taxation of low-tier cigarettes and smokeless tobacco products would help protect public health while limiting excessive profits by tobacco companies.
