ঢাকাবুধবার , ৫ অগাস্ট ২০২৬
The national budget for the 2026–27 fiscal year has been passed by Parliament. While several amendments were made to the proposed budget through parliamentary discussions, the final Finance Bill, including those amendments, did not mention the imposition of customs duties on nicotine granules—the raw material used to manufacture nicotine pouches—as well as cigarette filters and filter-making materials (acetate tow/cellulose acetate) imported by tobacco companies. Instead of including these measures in the Finance Bill approved by Parliament, the government imposed the duties through a Statutory Regulatory Order (SRO). Subsequently, another SRO was issued reducing the previously imposed duty rates.
The Bangladesh Network for Tobacco Tax Policy (BNTTP) has strongly protested this decision, alleging that the Ministry of Finance and the National Board of Revenue (NBR) manipulated the tax measures to benefit tobacco companies without considering public health consequences. BNTTP also claimed that the decision reflects interference by the tobacco industry.
The organization disclosed these concerns in a press statement issued to the media on Wednesday, 1 July 2026, protesting the reduction of proposed taxes on nicotine products, tobacco products, and certain tobacco-related inputs in the final Finance Bill.
According to the statement, despite repeated recommendations from public health experts, the government first removed the provision banning nicotine pouches from the Tobacco Control Act under the pretext of increasing revenue. It then effectively legalized the harmful product by imposing taxes on it. Rather than including these taxation measures in the national budget proposal or Finance Bill presented to Parliament, the government introduced them separately through SROs.
Initially, an SRO imposed a 100 percent supplementary duty on the import of cigarette filters, filter-making materials (acetate tow/cellulose acetate), and nicotine granules used to manufacture nicotine pouches. However, a subsequent SRO reduced those duty rates to 30 percent for cigarette filter materials and 60 percent for nicotine granules.
BNTTP argued that making such significant tax changes solely through SROs, bypassing Parliament, raises serious concerns about possible collusion between the Ministry of Finance and tobacco companies. The organization further alleged that vested interests at the policy-making level may also be involved. According to BNTTP, there is no precedent in Bangladesh’s history where taxes on tobacco-related products were increased and then immediately reduced in this manner. The organization described the move as undermining the government’s commitment to prioritizing public health and contradicting the Prime Minister’s stated policy objectives.
The statement further noted that the proposed supplementary duty on nicotine pouches was reduced from 40 percent to 35 percent. In addition, the budget fixed the retail price of a 10-gram nicotine pouch at only BDT 500, which is significantly lower than the current market price. Similarly, the budget set the price of 10 sticks of heated tobacco products at BDT 210, although heated tobacco products, e-cigarettes, and vapes currently retail for BDT 500 or more in the market.
BNTTP questioned why these products were assigned prices substantially below prevailing market rates, stating that the rationale behind such pricing is difficult to understand.
According to the organization, the government has fallen into a trap set by tobacco companies. It alleged that the industry intends to market these new tobacco and nicotine products at low prices in order to create a new generation addicted to nicotine. BNTTP warned that the government’s decision could expose millions of children, adolescents, and young people to nicotine addiction, resulting in severe long-term public health consequences.
Although these products are relatively new in Bangladesh, many countries around the world have already prohibited or strictly regulated nicotine pouches, e-cigarettes, and vaping products. BNTTP noted that 47 countries, including neighboring India, as well as Sri Lanka, Nepal, Thailand, Singapore, Malaysia, Iran, Iraq, Oman, and Qatar, have already banned the sale of these products. The organization also stated that the United Kingdom has recently taken steps to prohibit disposable e-cigarettes, while several other countries are adopting similar restrictions.
Ignoring the concerns and recommendations of public health experts, the government has effectively legitimized nicotine pouches and heated tobacco products by assigning official prices and imposing taxes on them in the budget, the statement said.
Considering the extensive health risks associated with these products, BNTTP called on the government to ban nicotine pouches, heated tobacco products, e-cigarettes, and other emerging tobacco products. Until such a ban is implemented, the organization urged the government to impose substantially higher retail prices and significantly higher tax rates on these products to discourage their use and protect public health.
