TDS Desk

Anti-tobacco organization PROGGA-ATMA in a quick budget reaction said that tobacco products are likely to be more affordable and revenue earning is likely to fall through the implementation of this proposed budget.

In a press release, the organizations revealed that, the proposed budget for FY 2026-27 raises the prices of low-tier cigarettes only by a marginal extent. The prices and tax rates of bidis, gul, and jarda have been kept unchanged. When adjusted for inflation and the increase in per capita income, the real prices of these tobacco products will actually decrease. The proposed budget also lacks any tobacco tax reform, introducing neither a reduction in the number of cigarette price tiers nor a move toward a specific excise tax system, leaving the existing tax structure largely intact. Therefore, the proposed national budget for FY 2026-27, if adopted, will increase the prevalence of tobacco use, tobacco-related deaths and illness, and cause the government to miss the opportunity of earning additional revenue, as stated by PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA) in a joint quick budget reaction following the presentation of proposed budget for the FY 2026-27.

The proposed budget raises the retail prices of 10 sticks of low-tier cigarette by BDT 02, setting the prices at BDT 62. If implemented, the price of cigarettes in this segment will rise by only 3.33 percent – well below the roughly 10.27 percent increase in per capita income, making tobacco products relatively more affordable over time. Such fall in the real prices of cigarettes will encourage the use of low-tier cigarettes among the youth and low-income demographic. It should be noted that low-tier cigarettes brands constitute about 75 percent of the total cigarette market of the country.

The prices of 10 sticks of medium, high and premium tier cigarettes are set respectively at BDT 92 from existing BDT 80 (15 percent hike), BDT 160 from existing BDT 140, (14.29 percent hike) and BDT 210 from existing BDT 185 (13.51 percent hike). These increases remain marginal compared with the rise in the prices of essential commodities. Moreover, in the absence of any structural reform of the cigarette tax system, tobacco companies will pocket the lion’s share of revenue generated through price hike. This additional profit will enable the tobacco industry to extend even further, thus posing a major risk to public health.

According to PROGGA-ATMA, the low and medium tier should be merged into one and prices for 10 sticks of the merged tier should be set at BDT 100. Moreover, the government should also introduce specific tax system, i.e., imposing BDT 04 per 10 sticks as specific taxes in addition to existing 67 percent of supplementary duty (SD). Raising prices of all tobacco products and implementation of these proposals put forth by anti-tobacco organizations will result in the inflow of an additional revenue amounting to BDT 44,000 crore and prevent the premature death of 400,000 lives.

The proposed budget has also kept the prices and taxes of bidi, jarda and gul unchanged. As a result, these cheap products will get even cheaper and more affordable, raising health risks for the poor and the women. Moreover, the budget also sets the price for 10 grams of nicotine pouch at BDT 500 and 10 sticks of heated tobacco at BDT 210, followed by 40 percent and 67 percent of SD. Although the Ministry of Health previously proposed a ban on these emerging tobacco products, it was not incorporated in the recently passed amendment of the tobacco control law, a move that is expected to heighten threat to public health. The proposed budget also imposed a 350 percent SD on the import of Nicotine granules and Nicotine Pouches. Adoption of ‘Track and Trace’ method to monitor production and supply of tobacco products has also been proposed.

In his reaction to the proposed budget for FY 2026-27, ABM Zubair, Executive Director, PROGGA, said, “If the proposed budget is passed as it is, it will render tobacco products even cheaper and more affordable. It will also encourage the youth and the low-income demographic into tobacco use, thus increasing tobacco-related diseases and deaths.”

Notably, the prevalence of tobacco use among Bangladeshi adults is 35.3 percent and tobacco claims 200,000 lives a year in Bangladesh. The toll on public health and environment inflicted by tobacco use and production causes the national economy a yearly loss of nearly BDT 87,000 crore. Against this backdrop, PROGGA and ATMA urge the policymakers to incorporate reform proposals put forth by anti-tobacco organizations to safeguard public health and make use of the opportunity to increase revenue.