Abrupt amendments to tobacco law: A blow on economy and livelihoods of millions

The rushed attempt at making amendments to Bangladesh’s tobacco control law 2005 (amended 2013) has raised significant concerns across various sectors, especially among those who stand to be most affected—farmers, retailers, street vendors, and the consumers. The draft "Smoking and Tobacco Products Usage (Control) Ordinance, 2024" has been sent for approval to the Advisory Council by Ministry of Health, a press release read.

It should be noted that, there was a similar attempt to make non-inclusive and inconsiderate amends to the law back in 2022. Relevant stakeholders and industry experts were not consulted back then either. While tobacco control is a laudable initiative, not all measures work equally across different countries. In some cases, they bring unintended consequences—such as loss of government revenue, job losses, and the expansion of the illegal market. These amendments, being forcefully passed without proper consultation with stakeholders, present the risk of damaging the industry that contributes significantly to the nation’s economy and to the government’s revenue.

Bangladesh's tobacco industry accounts for approximately 10-13% of the total government revenue. In 2023-24 FY alone, the sector contributed about BDT 40,000 crore to the national exchequer.  Despite its importance in our economy and on livelihood of millions, these recent amendments are being pushed forward abruptly, with little regard for the potential fallout. The industry operates within a delicate ecosystem where sudden, sweeping changes can ripple out and affect everyone from the farmers who cultivate tobacco to the retailers and hawkers who rely on its sale for their livelihood. Introducing common-face cigarette branding, for example, may open the door to counterfeit products flooding the market, creating severe challenges for small businesses already operating on thin margins.

The reality is that these laws, while intending to reduce tobacco consumption, will inadvertently harm some of the country’s most vulnerable citizens. Concerns prevail for more than 15 lakh small retailers who will require additional resources to remain compliant to the proposed changes. Street vendors, hawkers and families that depend heavily on the earning from sale of tobacco products directly and indirectly will be immediately impacted. Multiple sources suggest that more than 60 lakh people will suffer. This restrictive policy will halt their daily business, creating financial hardship for these individuals who are already struggling to make ends meet in this merciless inflation condition. The sudden and strict policy is expected to now render the livelihoods unsustainable for more than 750,000 tobacco farmers, as demand for quality crop from compliant manufacturers is likely to drop due to market disruptions. Without a proper alternative plan for these farmers to shift from their cash crop to other agricultural productions, the last thing the nation needs at this point is to demolish livelihood of farmers and their families.

Proper consultation with the affected industries and societal groups is crucial. When done properly, such consultations help identify and exclude potentially harmful elements from the draft laws. The expertise of people working in the regulated field daily is invaluable, helping to avoid costly but inefficient decisions. Moreover, the amendments overlook the larger picture when it comes to a tobacco-free Bangladesh. The former Prime minister Sheikh Hasina committed to a tobacco free country by 2040 and strengthened the National Tobacco Control Cell with the aim to achieve that goal. However, the cell and relevant Health Ministry officials then allegedly bypassed the right steps in the policy amendment process and overlooked the stakeholder opinions during the previous draft proposal for amendments of the law. It is alarming that while there have been significant needful changes in roles, the bypassing of right legal process and lack of inclusivity persists. A rushed, non-inclusive approach to such significant reforms contradicts the essence of this long-term national benefits, non-discrimination and good governance. Effective progress toward reducing tobacco consumption requires a phased, well-considered process that includes the voices of all relevant stakeholders—farmers, retailers, consumers, manufacturers and public health experts alike. Without their input, the amendments may ultimately fail to achieve their goals, instead driving people toward cheaper, more harmful alternatives, while devastating government revenue and the socio-economy through availability of other harmful and illegal products in the market.

Illegal cigarette trade, which continues to be a thorn in the side of both the government and legitimate tobacco manufacturers has already been seeing uprise in Bangladesh. In March 2022, for example, authorities discovered over 32 million counterfeit tax stamps in a shipment from China, highlighting the scope of the problem. Evidence suggests that in each country which introduced excessive regulatory measures, illicit trade increased by 5 – 15 percentage points. Counterfeit and tax-evaded cigarettes erode the government's tax base and hurt law-abiding businesses. If new tobacco laws are enforced without careful consideration, they could exacerbate these problems as price-sensitive consumers are more likely to turn to illicit products.

For Bangladesh to truly progress toward its health and economic goals, it must adopt a holistic approach to tobacco regulation. Gradual adaptable changes, supported by public awareness campaigns and stricter law enforcement against illegal trade, offer a more effective path forward. A hasty reform excluding those impacted could undermine the very vision it seeks to uphold—damaging livelihoods, reducing government revenue, and pushing consumers toward more dangerous products in the process. It is vital that the voices of those who stand to be most affected must be heard, and their concerns must be addressed before these amendments are passed. Only through careful, comprehensive policymaking can the government achieve a balance between revenue collection, public health, and social equity.

Barrister Mahmud Al Mamun (Himu) is a practising lawyer, human rights, and social activist. He is also General Secretary, Lead-BD.