Staff Correspondent:

Speakers at a workshop have demanded an increase of uniform supplementary duty on all cigarette tiers to 70 per cent in the upcoming 2025–26 fiscal year to effectively reduce cigarette use to the desired levels.

The workshop, titled ‘NBR’s Role in Effective Cigarette Taxation for Safeguaring Public Health, was arranged by Unnayan Shamannay on Saturday at the Bishwo Sahitto Kendro in Dhaka.

It was stated that 70 to 75 per cent of total cigarette sales consist of low-tier, inexpensive cigarettes in Bangladesh, according to a press statement.

“Anti-tobacco civil society organisations have long demanded raising the supplementary duty on low-tier cigarettes to match those of other tiers (medium, high, and premium).”

Citing the positive results of the imposition of 67-per cent uniform supplementary duty on all cigarette tiers by the National Board of Revenue (NBR) midway through the current fiscal year, Research Director at the Bangladesh Institute of Development Studies (BIDS) Dr. S.M. Zulfiqar Ali said, “The duty must be increased to 70 per cent in the upcoming 2025-26 fiscal year to effectively reduce cigarette use to the desired levels.”

During the workshop’s background presentation, Research Director of Unnayan Shamannay Abdullah Nadvi stated that the NBR took a significant step for tobacco control by raising prices of various cigarette tiers by 8 to 20 per cent in January.

However, he argued that implementing such measures at the start of the fiscal year—rather than midway—would have maximized benefits.

“For example, the mid-year price hike may reduce cigarette use from 15.1 per cent to 14.19 per cent by the end of the fiscal year. Had this been done earlier, usage could have dropped further to 13.84 per cent.”

Md. Mashiur Rahman, the First Secretary (VAT Policy) of the NBR, outlined the organisation’s strategies, successes, and challenges in curbing cigarette consumption through taxation.

He emphasized that the NBR prioritises public health over revenue generation when setting cigarette prices.

Mohammad Belal Hossain Chowdhury, Member (VAT Implementation and IT) of NBR, also the chief guest at the workshop, highlighted that the mid-year price and tax hikes halved low-tier cigarette sales in February compared to the previous year.

He also assured stakeholders that the NBR will collaborate with all parties to revise the cigarette tax structure. Anti-tobacco civil society groups proposed reducing the number of cigarette tiers from four to three in the next fiscal year and setting a minimum price of 10 takas per stick.

Other speakers included Mirza Mohammad Mamun Sadat (First Secretary, Tax Policy, NBR) and Md. Mostafizur Rahman, former Chairman of the Bangladesh Chemical Industries Corporation (BCIC).

Students, civil society representatives, and journalists engaged in discussions with experts and policymakers. The event was moderated by Shahin Ul Alam, Head of Programs at Unnayan Shamannay.