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New tobacco tax tabled to tackle NCDs, boost revenue

Published : Thursday, 30 April, 2026 at 12:00 AM  Count : 47
Leading physicians and public health experts on Wednesday made a strong case for sweeping tobacco tax reforms in the FY 2026-27 national budget, arguing that higher and simplified taxes are critical to curbing the growing burden of non-communicable diseases (NCDs) while reinforcing Bangladesh's fiscal health.

The call came at a seminar titled "Increasing Tobacco Taxes for the Prevention of Non-Communicable Diseases: Budget FY 2026-27 Perspective," organised by the National Heart Foundation of Bangladesh.

TERRIBLE TOBACCO TRUTH
*    In 2024 alone, the economic cost of tobacco-related healthcare and 
environmental damage was estimated at Tk 87,000 crore
*    Tobacco-related illnesses are responsible for nearly 200,000 premature deaths each year in the country
*    Proposed reforms could encourage around 500,000 adults to quit smoking

In her welcome remarks, Prof Fazila-Tun-Nesa Malik, secretary general of the organisation, stressed that tobacco control must be placed at the core of national public health policy. The keynote paper, presented by Prof Dr Sohel Reza Choudhury, highlighted the alarming scale of tobacco use and its economic toll.

Bangladesh continues to record the highest tobacco use prevalence in South Asia, with 35.3 percent of adults consuming tobacco products, according to the Global Adult Tobacco Survey 2017. Tobacco-related illnesses claim nearly 200,000 lives annually. In 2024 alone, the economic cost-spanning healthcare expenditure and environmental damage-was estimated at Tk 87,000 crore, more than double the revenue generated from the sector.

Speakers underscored that raising tobacco taxes remains the most effective tool to cut consumption. However, they criticised the current multi-tiered tax system as overly complex and counterproductive, allowing tobacco products to remain cheap and accessible.

The seminar proposed merging low- and medium-tier cigarette slabs and fixing a minimum retail price of Tk 100 for a 10-stick pack. It also recommended Tk 150 for high-tier and Tk 200 for premium brands, alongside a uniform specific tax of Tk 4 per pack across all categories.

Prof Dr Golam Mohiuddin Faruque of the Bangladesh Cancer Society said the existing structure enables smokers to switch to cheaper brands instead of quitting, diluting tobacco control efforts. The proposed measures, he noted, would significantly reduce consumption and deter youth initiation.

Public health expert Dr Mushtaq Hossain said stronger tobacco taxation can deliver a dual dividend-saving lives and strengthening domestic resource mobilisation. He projected that the reforms could prompt around 500,000 adults to quit smoking and help avert hundreds of thousands of premature deaths, while generating an additional Tk 44,000 crore in revenue.
Dr Md Zahidul Islam Shakil of the Doctors' Association of Bangladesh warned that tobacco use is fuelling a surge in chronic respiratory diseases, lung cancer and other NCDs, calling for urgent policy action.

Echoing the urgency, Md Akhteruzzaman, director general of the National Tobacco Control Cell, reaffirmed the government's commitment to making tobacco products less affordable and confirmed plans to introduce a specific tax system within the current fiscal year.
Chaired by Prof Yunusur Rahman, the seminar concluded with a clear consensus: bold tobacco tax reforms can simultaneously expand government revenue, reduce consumption and deliver substantial public health gains nationwide.



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