Why Bangladesh’s new government should reassess interim govt’s ordinances

As Bangladesh’s newly elected government faces a daunting task: reviewing 133 ordinances issued by the immediate past interim administration amid concerns over constitutional legitimacy, fiscal stability, and regulatory credibility.

President Mohammed Shahabuddin has alleged that during the 18-month interim government, 133 ordinances were issued without proper coordination with his office. He claims he was excluded from major decisions and even faced attempts to be unconstitutionally removed. Under Article 93 of the Constitution, any ordinance issued while Parliament is not in session must be placed before the new Parliament within 30 days of its first sitting or else it lapses.

With the 13th Parliament’s first session set for March 12, all 133 ordinances from the interim period will be tabled. Lawmakers must decide whether to approve, amend, or reject each measure. Legal experts warn that many decrees issued in haste may not meet the “urgent necessity” test. After the 2007–08 caretaker government, for example, only 54 of 122 ordinances were ratified. How Parliament handles this backlog will test its commitment to constitutional oversight.

Among the most consequential ordinances is the Smoking and Tobacco Products Usage (Control) (Amendment) Ordinance, 2025. It introduced sweeping reforms: banning e-cigarettes, vapes, and heated tobacco products; expanding the definition of tobacco; outlawing smoking in all public places and transport; eliminating designated smoking areas; banning point-of-sale displays; and mandating larger health warnings on packaging. 

While public health advocates welcomed the measures, the process drew criticism. The ordinance was enacted without stakeholder consultation or economic impact assessment. Similar proposals in 2021–22 were returned by the elected cabinet after objections from businesses and ministries. The interim government’s unilateral move to enact the law via ordinance, bypassing consultation, raised concerns about transparency, enforceability, and economic impact - especially given the tobacco sector’s contribution to government revenue.

On March 1, 2026, the High Court issued a stay order against the confiscation of legally imported e-cigarettes and questioned the constitutionality of Section 6(Ga) of the ordinance. The court asked the government to explain why the provision which bans all ENDS and heated tobacco products, should not be struck down. Petitioners argued that the law unfairly targets vaping products, widely seen as harm-reduction tools, while allowing traditional cigarettes to remain legal. They claim this violates Article 27 of the Constitution, which guarantees equality before the law.

This legal challenge has effectively frozen enforcement of a key provision of the ordinance and highlights the risks of pushing major regulations without legal and political consensus.

The ordinance also arrived at a time of fiscal fragility. Despite raising cigarette taxes to as high as 83% of retail price, government’s expected revenue did not materialize. Instead, collections fell due to a surge in illicit cigarette sales.

A study by Insight Metrics found that illicit cigarettes now make up 13.1% of the market -- over 830 million untaxed sticks sold monthly -- costing the government at least Tk 4,000 crore annually. Law enforcement seized over 600 million illegal cigarettes in 2024 - 25, but officials admit much of the trade goes undetected. Economists warn that abrupt bans, such as on single-stick sales or vape products, could push more consumers into the black market, further eroding tax revenues.

On the other hand, Bangladesh’s tax-to-GDP ratio fell to just 6.6% in FY2024-25 -- one of the lowest in Asia. Raising this ratio is a key condition of the country’s $4.7 billion IMF loan programme.

Meanwhile, the FY2025–26 budget deficit stands at 3.6% of GDP, and projections for FY2026–27 suggest the largest deficit in the country’s history, potentially exceeding 4-5% of GDP.

In this context, any policy that risks shrinking a major revenue stream -- like tobacco -- must be carefully weighed. The BNP-led government has pledged to raise the tax-to-GDP ratio to 15% and crack down on smuggling and tax evasion. Achieving these goals while maintaining public health commitments will require calibrated reforms, not blanket bans that could destabilize revenue flows.

The new government must ensure that no interim decree is ratified without due diligence. A structured review of all interim-era decisions, conducted transparently and consultatively, will reinforce the rule of law and set a precedent that major reforms must be achieved through Parliament. Each ordinance should undergo legal vetting, parliamentary debate, and economic impact analysis.

(The author is a lawyer.)