PROGGA, ATMA criticise new tobacco pricing in national budget

Civil society organisations PROGGA and Anti-Tobacco Media Alliance (ATMA) have criticized the proposed budget for FY2026-27, which raises the prices of low-tier cigarettes only by a marginal extent and keeps the prices and tax rates of bidis, gul, and jarda unchanged.

When adjusted for inflation and the increase in per capita income, the real prices of these tobacco products will actually decrease, they said in a press release.

According to the organisations, 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 FY2026-27, 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, the organisations said.

The proposed budget raises the retail prices of 10 sticks of low-tier cigarette by Tk2, setting the prices at Tk62. If implemented, the price of cigarettes in this segment will rise by only 3.33% - well below the roughly 10.27% 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% of the total cigarette market of the country, the organisations added.

The prices of 10 sticks of medium, high and premium tier cigarettes are set respectively at Tk92 from existing BDT 80 (15% hike), Tk160 from existing Tk140, (14.29% hike) and Tk210 from existing Tk185 (13.51% 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, the press release said.

Experts from the two organisations further said that 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 Tk100.

Moreover, the government should also introduce specific tax system, imposing Tk4 per 10 sticks as specific taxes in addition to existing 67% of supplementary duty (SD).

Raising prices of all tobacco products and implementation of these proposals put forth by anti-tobacco organisations will result in the inflow of an additional revenue amounting to Tk44,000 crore and prevent the premature death of 400,000 lives, they said.

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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 Tk500 and 10 sticks of e-cigarettes at Tk210, followed by 40% and 67% of SD respectively.

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% 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 FY2026-27, ABM Zubair, executive director of 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% 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 Tk87,000 crore. Against this backdrop, PROGGA and ATMA urge the policymakers to incorporate reform proposals put forth by anti-tobacco organisations to safeguard public health and make use of the opportunity to increase revenue.