Raise tax on tobacco products to protect public health

Anti-tobacco campaigners yesterday urged the government to raise taxes on tobacco products in the upcoming fiscal year, aiming to discourage tobacco use and protect public health.

The demands came during a workshop on raising tobacco product tax in the upcoming FY 2026–27 national budget and what journalists should do to protect public health at a city hotel.

National Heart Foundation of Bangladesh arranged the workshop aimed to brief journalists on the rationale and need for tobacco taxation reform.

Citing evidence, speakers dispelled several common myths: that increasing tobacco prices does not reduce consumption, that higher tobacco taxes will lower government revenue, or that price hikes will boost illicit trade.

Presenting the proposal, Prof Shafiun Nahin Shimul, director of the Institute of Health Economics, Dhaka University, said in 2023-24, the total economic cost of tobacco use and production -- including health and environmental damage -- amounted to Tk 87,000 crore, which is more than double the estimated Tk 40,000 crore revenue generated from the tobacco sector that fiscal year.

He said although there is a myth that increasing tobacco prices does not reduce tobacco consumption, but evidence does not support it. Increase in the cost of tobacco products reduces tobacco use. But the price increase has to be a significant amount.

Another myth, that higher tobacco taxes will lower government revenue is also incorrect. Instead, this reform could generate about Tk 44,000 crore in additional tax revenue compared to the previous fiscal year, he added.

In the proposal, they recommended merging the low and medium tier tobacco products and setting the maximum retail price at Tk 100 -- currently Tk 60 and Tk 80 respectively -- while increasing tax by Tk 10 for the high tier and Tk 15 for the premium tier. Besides, they also suggested Tk 4 be imposed as a specific tax per packet.

Prof Shimul further stated that the current tax structure is not effective, as smokers can easily switch to cheaper brands. Increasing prices by merging low and medium tier of products would reduce tobacco use, discourage initiation among youth, and increase government revenue.

Prof Sohel Reza Choudhury, Department of Epidemiology and Research at the National Heart Foundation Hospital and Research Institute, said increasing tobacco taxes is not only a revenue measure, but also a critical investment in protecting future generations.

He added that the proposed reforms could encourage nearly 5,00,000 adults to quit smoking and prevent approximately 3,70,000 premature deaths in the long term.

Sheikh Momina Moni, additional secretary of the Health Ministry; Mostafizur Rahman, lead policy adviser at Campaign for Tobacco-Free Kids (CTFK); Ataur Rahman, advocacy manager (Bangladesh) for CTFK; Aruna Sarkar, coordinator of the Tobacco Control Program, and Bangladesh Health Reporters Forum President Proteek Izaz also spoke, among others.