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While proposals from anti-tobacco civil society organisations were not initially reflected in the current fiscal year’s budget, mid-year adjustments raised the maximum retail prices of cigarettes across tiers by 8–20% and imposed a uniform supplementary duty rate of 67% on all tiers.
Though delayed, the adoption of these measures has yielded dual benefits: advancing public health protections and creating potential for additional government revenue.
In this context, national think tank Unnayan Shamannay has called for maintaining and bolstering this effective taxation trend in the upcoming 2025-26 fiscal budget.
The demand was announced at a pre-budget press conference held Monday at the Zahur Hossain Chowdhury Hall of the National Press Club in Dhaka, according to a press release.
Abdullah Nadvi, Research Director of Unnayan Shamannay, presented the proposals.
Dr Mahabub Hasan, Senior Research Associate at Unnayan Shamannay, moderated the conference.
He stated that adhering to civil society recommendations could enable the government to collect 40% more revenue in the next fiscal year compared to the current one, even while keeping the existing supplementary duty rate (67%) unchanged.
Additionally, consolidating cheaper lower- and middle-tier cigarettes into a single tier with a maximum retail price of Tk 9 per stick could discourage youth smoking.
Professor Dr Shafiun Nahin Shimul of Dhaka University’s Health Economics Institute emphasised prioritising public health over revenue, noting that tobacco-related tax revenue covers only 75% of tobacco-induced healthcare costs.
Dr Mahfuz Kabir, Research Director at BIIISS, highlighted that effective taxation could increase government revenue from cigarettes by 11–28%. He warned that failing to adjust cigarette prices with inflation has led to a steady rise in sales in recent years.
The event was also addressed by MM Rashed Rabbi, President of the Bangladesh Health Reporters Forum, and Homayra Ahmed, Research Associate at BIDS