Public health and economic experts on Sunday urged the government to strengthen tobacco taxation in the final stages of the FY2026-27 budget process at a press conference in Dhaka.
They argue that the proposed measures are not ambitious enough to significantly reduce tobacco use, discourage youth smoking, and maximize public revenue.
The call came at a post-budget press conference titled “Budget FY27: Final Window for Tax and Policy Reforms on Tobacco,” organized by the Power and Participation Research Centre (PPRC) at the National Press Club.
Speakers said Bangladesh’s tobacco tax structure still keeps tobacco products affordable for many consumers despite repeated price increases. They said the current system allows smokers to shift to cheaper brands instead of quitting.
Presenting findings on cigarette affordability and market trends, Mohammad Ihtesham Hassan, senior research associate at the Power and Participation Research Centre (PPRC), said government revenue from tobacco has continued to rise while overall cigarette supply has declined since 2024.
“The continued existence of a low-price cigarette segment weakens the public health impact of tax increases. Instead of reducing consumption, many smokers simply move to cheaper brands. A more effective structure would merge the low and medium tiers, establish a minimum price of Tk 100 per 10 sticks, and introduce a Tk 4 specific tax per pack to ensure that price increases translate into public revenue,” he said.
Dr Shafiun N Shimul, professor and director of the Institute of Health Economics at the University of Dhaka, said Bangladesh remains one of the world’s large cigarette markets, with around 70 billion sticks sold annually.
He questioned whether recent tax measures are delivering the maximum public benefit, noting that smoking prevalence has not fallen at the expected rate despite successive price increases.
“When the price of a medium-tier pack rises from Tk 80 to Tk 92, the critical question is who benefits from that increase. A greater share of the gain should accrue to the government rather than tobacco companies. Any revenue loss to the government is ultimately a loss to the people,” he said.
Dr Shimul also raised concern over the growing availability of emerging nicotine products. Referring to international experience, he warned that delays in regulation could increase nicotine use among young people.
“The rapid expansion of nicotine products among young people in several countries demonstrates the risks of regulatory delay. Bangladesh must act proactively to prevent a similar outcome,” he said.
Dr S M Abdullah, associate professor of economics at the University of Dhaka, said tobacco taxation remains one of the most effective tools for preventing non-communicable diseases and reducing long-term healthcare costs.
“If Bangladesh is serious about shifting from curative to preventive healthcare, tobacco taxation must become a central policy instrument. We need a clear roadmap that simplifies the structure and reduces affordability,” he said.
He also highlighted regulatory weaknesses in the smokeless tobacco sector, particularly its widespread use among women. He said the absence of licensing, registration and traceability systems makes monitoring and enforcement difficult.
The discussion also underscored the need for stronger enforcement of existing tobacco control laws. Dr Syed Mohammad Akram said smoking is already prohibited within designated distances of hospitals, parks and playgrounds, while mobile courts have the authority to penalize violators.
“Existing laws provide adequate authority for enforcement. Stronger use of mobile courts and smarter monitoring systems can help reduce violations, strengthen compliance, and identify tax evasion more effectively,” he said.
Moderating the discussion, PPRC Executive Chairman Dr Hossain Zillur Rahman said the central question was not whether tobacco prices had increased, but whether the increases were sufficient to meet public health and revenue goals.
He said: “The issue is not simply whether prices have increased, but whether the increase is sufficient to reduce tobacco use and maximize public revenue.”
He added that some proposed tax adjustments appear disconnected from market realities and warned that illicit trade and market evasion continue to erode government revenue.
“When tax decisions become trapped in decimal-point calculations rather than reflecting actual market conditions, the policy impact remains limited and valuable revenue opportunities are lost,” he said.
Dr Rahman also expressed concern over the government’s approach to e-cigarettes, saying recent regulatory changes have effectively granted official recognition to the products despite limited revenue gains.
He added: “The potential revenue gains are marginal, but the risks to young people are substantial and could create a serious public health challenge in the years ahead.”
The speakers urged policymakers to use the remaining budget approval process to introduce stronger tobacco tax reforms, saying higher and more effective taxation would help reduce consumption, improve public health outcomes and generate additional domestic revenue.
