Tobacco industry alarmed at govt’s reluctance to allow stakeholder-inclusive consultation

Leading companies in the tobacco industry today issued a joint statement, expressing their serious concerns over the government’s attempt to pass the proposed amendment to the Tobacco Control Act without a stakeholder-inclusive consultation in the absence of appropriate Parliamentary process. Industry players believe that the proposed amendment will result in “far-reaching, negative consequences on the country’s economy, investment climate, risk to consumer product quality, and, most importantly, the livelihood of the associated communities.”

In a unified statement, British American Tobacco Bangladesh (BATB) Managing Director Monisha Abraham, Philip Morris Bangladesh Managing Director Reza-Ur-Rahman Mahmud, and JT International Bangladesh Managing Director Paul Holloway, said: 

“While we fully support the government’s commitment to public health, we believe that the certain measures proposed in the draft ordinance are not evidence-based, and will jeopardize the local livelihoods, further fuel an already growing illicit tobacco market, result in government tax revenue leak, and discourage further foreign investment – ultimately severely impacting an already declining industry.

“Amongst multiple detrimental clauses, the draft includes an ingredient ban, which poses direct threat to the current cigarette operations in the country entirely. The ingredients included in the proposal for ban are essential for processing, manufacturing, and preservation, and are critical to ensure product integrity. In addition, other business-critical clauses, such as mandating retailers license to sell cigarettes, will impact the current 1.5 million retailers and disrupt the legal sales of tobacco products to the retailers and the operations of associated 150,000 tobacco farmers, until the licenses are made available to all the impacted parties and this requires a fair and transparent process with proper consultation.

“Furthermore, the proposed prohibition of smokeless nicotine and tobacco products will take away legitimate choices for adult nicotine consumers, who are looking for reduced risk profile alternatives compared to combustible cigarettes, to transition from combustible tobacco. A de-facto ban on these important product categories will further boost an existing illicit market with compromised quality products, as seen in other countries such as India and Australia. The illicit products will not be controlled by any standards to ensure product quality, further increasing the risk for consumer access to these products.”

“Enacting the proposed Bill without a holistic stakeholder-inclusive consultation poses significant risks to Bangladesh’s economy and public health objectives. We urge the government to consider the views of manufacturers, impacted farmers, marginalized retailers, hawkers, printers, and others in the value chain, to avoid the negative, unintended consequences caused by these proposed amendments. We are fully committed to collaborating with the government, alongside other stakeholders, to find a balanced and comprehensive solution.”

“When the Tobacco Control Act was first drafted in 2005, the government coordinated a stakeholder-inclusive dialogue with the manufacturers, as well as impacted parties across the value chain. As a result, the adopted tobacco control act was balanced and effective. Since its adoption, the smoking prevalence has decreased, and the illegal market of cigarettes had been contained at the minimal level.”

“Given the economy of the country is already at a challenging stage, any non-stakeholder inclusive decision can put the entire industry and much-needed tax revenue at risk. Excluding the year impacted by COVID-19, the tobacco sector delivered an annual government revenue growth of 12-15%, but in the fiscal year of 2024-25, it has come down to only around 4- 5%.”

“The tobacco industry has also played a vital role in employment of the local communities, directly and indirectly supporting an estimated 4.4 million livelihoods across the value chain, including over 150,000 farmers and 1.5 million retailers.  Furthermore, the sector has historically attracted significant foreign direct investment (FDI), including the landmark USD 1.5 billion acquisition of a local tobacco business by JT International Bangladesh—the largest FDI inflow in Bangladesh in the past 50 years.”