The interim government’s proposed national budget for FY 2025-26, announced by the Finance Adviser Dr Salehuddin Ahmed, has drawn sharp criticism from anti-tobacco activists for keeping cigarette prices and taxes unchanged across all tiers.
Finance Adviser Dr Salehuddin Ahmed presented the proposed budget for the 2025-2026 fiscal year, amounting to Tk7,89,999 crore, in a televised speech on Monday.
Experts warn that this decision could deprive the government of at least Tk20,000 crore in additional revenue while making cigarettes more accessible to young smokers.
Activists urge the government to increase cigarette prices across all tiers, particularly by merging the low and medium tiers—which account for 80% of the market—into a single category with a minimum retail price (MRP) of Tk90 for 10 sticks.
They argue this would boost government revenue while significantly reducing tobacco consumption.
The budget also leaves bidi prices unchanged for the sixth consecutive time, with supplementary duty remaining static for the tenth straight year.
Similarly, taxes on smokeless tobacco products such as jarda and gul remain unaltered, sparking concerns among health advocates.
Over 50% of all tobacco users in Bangladesh consume smokeless tobacco, with women and the poor disproportionately affected.
Experts warn that inflation and rising per capita income will make these products even more affordable, exacerbating health risks.
While the budget raises the advance tax on cigarette manufacturers from 3% to 5% and increases supplementary duty on imported cigarette paper from 150% to 300%, activists argue these measures fall short of ensuring meaningful public health protection.
Reacting to the budget, ABM Zubair, executive director of PROGGA (Knowledge for Progress), emphasized the devastating impact of tobacco, saying: “Tobacco claims 442 lives each day in Bangladesh. The proposals put forth by anti-tobacco activists, if realized, would reduce tobacco use and tobacco-related deaths while increasing government revenue.”
With 35.3% of adults in Bangladesh using tobacco, experts stress that adopting higher taxes and price hikes in the finalized budget could help prevent 1.7 million premature deaths, including 9,00,000 among youth, while securing vital revenue for public health initiatives.
