The research and advocacy organizations PROGGA (Knowledge for Progress) and the Anti-Tobacco Media Alliance (ATMA) have urged reducing the number of cigarette price tiers, introducing a specific tax system, and increasing the prices of all tobacco products in the upcoming 2026-27 fiscal year budget. If these proposals are implemented, tobacco use and premature deaths will decline, while government revenue will increase significantly. The two organizations presented these recommendations today (Monday, 20 April 2026) at a pre-budget press conference held at the Tofazzal Hossain Manik Miah Hall of the National Press Club.
The proposals for the upcoming national budget presented during the event are as follows: The low and medium tiers should be merged into one, with the retail price for 10 sticks set at BDT 100. The retail price of high-tier cigarettes should be set at BDT 150 per 10 sticks, while the price of premium cigarettes should be set at BDT 200 or above per 10 sticks. Simultaneously, it was proposed to retain the existing 67% supplementary duty (SD) and impose a specific tax of BDT 4 per pack of 10 sticks.
In support of the tobacco price and tax proposals, Dr. Mahfuz Kabir, Research Director of Bangladesh Institute of International and Strategic Studies (BIISS), said, “Currently, the majority of cigarette users consume low- and medium-tier cigarettes. If these two tiers are merged and the number of cigarette price tiers is reduced from the existing four to three, it will especially discourage smoking among young people and low-income groups.”
Professor Dr. Rumana Huque, Department of Economics at the University of Dhaka said, “If the proposed reforms to the cigarette tax structure are implemented, it will not only protect public health but also create an opportunity to address the existing pressure on the country’s economy through increased revenue collection.”
Ayesha Suhaima Rab, Program Associate, Centre for Policy Dialogue (CPD) said, “Introducing specific taxation would make the existing tobacco tax structure simpler and more effective.”
Experts also recommended that the government introduce uniform price and taxes for both filtered and non-filtered bidi and the retail price for 20 sticks of bidi should be BDT 30, followed by a 50 percent SD. For jarda and gul, it was proposed to set retail prices at BDT 60 and BDT 30 per 10 grams respectively, and to impose a 60% supplementary duty. At the same time, it was demanded to retain a 15% VAT and a 1% health development surcharge on all tobacco products.
In support of the proposals, speakers informed that the budget proposals for FY 2026-27 placed by anti-tobacco organizations, if realized, can help the government raise a staggering BDT 85,000 crore in revenue, which is approximately BDT 44,000 crore higher than the current fiscal year. The implementation of such proposals, in the long run, will also help prevent the premature deaths of 370,000 Bangladeshis, including nearly 185,000 youths. It would also encourage nearly 500,000 adults to abstain from smoking and discourage around 372,000 youths from starting smoking.
The discussants in the workshop include Md. Monir Hossain Liton, Head of Online (Bangla), the Daily Times of Bangladesh; Mortuza Haider Liton, Convener, ATMA; Mizan Chowdhury, Co-convener, ATMA; ABM Zubair, Executive Director, PROGGA and representatives from a number of anti-tobacco organizations. Nadira Kiron, Co-convener, ATMA hosted the event whereas Md. Hasan Shahriar, Head of Programs, PROGGA presented the budget proposals.
It should be noted that tobacco, the fourth major risk factors behind premature deaths and disabilities in Bangladesh, claims nearly 200,000 lives each year in the country. The toll on public health and environment inflicted by tobacco use and production caused the national economy a loss of BDT 87,000 crore in FY 2024-25 which is more than twice the size of revenue generated from the tobacco sector, amounting to BDT 41,000 crore.
