Effective tobacco taxation needed to protect public health

Water Resources Minister Shahid Uddin Chowdhury Annie said on Wednesday effective taxes on tobacco products are necessary in the 2026-27 national budget to protect public health.

He made this remark while speaking as the chief guest at a seminar organised by Dhaka Ahsania Mission (DAM) at its auditorium in Dhanmondi, Dhaka. 

The minister said the government is committed to building a healthy, safe, and tobacco-free Bangladesh. He also mentioned the BNP's promise to control non-communicable diseases caused by tobacco use.

 Prof. Dr. Shafiun Nahin Shimul, director of the Institute of Health Economics at the University of Dhaka, presented a keynote paper. He said around 90 per cent of cigarettes sold in Bangladesh belong to the low and medium price tiers, making them easily affordable for young people and low-income groups.

He explained that the small price difference between low and medium-tier cigarettes allows smokers to switch to cheaper brands instead of quitting when prices rise slightly. He also said smokeless tobacco products such as jarda, gul, and bidis are increasing addiction across the country.

Experts at the seminar proposed merging the low and medium cigarette tiers. They suggested fixing the minimum retail price of a 10-stick cigarette pack at Tk 100. Under the proposal, high-tier packs would cost Tk 150, while premium packs would cost Tk 200.

The proposal also includes a 67pc supplementary duty on all cigarette tiers and a flat Tk 4 specific tax. Experts believe these measures could prevent more than 372,000 young people from starting smoking and save over 185,000 lives from premature death.

They also said the new tax structure could increase government tobacco revenue by Tk 44,000 crore, raising total annual revenue to around Tk 85,000 crore.

Additional Secretary Sheikh Momina Moni said Bangladesh has the highest tobacco use rate in South Asia at 35.3pc. She added that tobacco causes nearly 200,000 premature deaths every year in the country.

According to her, tobacco-related damages in 2024 reached Tk 87,000 crore, which is more than double the revenue earned from the tobacco sector.