Higher tobacco taxes could raise Tk 440bn in revenue, curb deaths: ATMA

It suggests a specific tax of Tk 4 per 10-stick pack, alongside the existing 67 percent supplementary duty

Restructuring cigarette pricing and taxation could generate around Tk 440 billion in additional revenue and help prevent about 400,000 premature deaths in the long term, the Anti-Tobacco Media Alliance (ATMA) has said.

The proposal was presented at a pre-budget discussion held at the National Board of Revenue Headquarters on Tuesday.

The proposal suggests merging low and medium cigarette tiers and setting retail prices at Tk 100 per 10 sticks, Tk 150 for high-tier brands and Tk 200 or more for premium brands, according to a media statement.

It also calls for a specific tax of Tk 4 per 10-stick pack in addition to the existing 67 percent supplementary duty.

NBR Chairman Md Abdur Rahman Khan said higher tobacco taxes and prices have been shown to reduce cigarette consumption, adding that further increases would be considered.

Speakers said the lack of effective price adjustments has reduced the real cost of tobacco products, making them more affordable compared with essential goods.

Citing 2025 data from the World Health Organization, they noted cigarette prices in Bangladesh are lower than several regional countries.

The discussion also proposed setting a uniform price of Tk 30 for 20-sticks of hand-rolled local cigarettes known as Bidis, with a 50 percent supplementary duty.

For smokeless tobacco products, retail prices were suggested at Tk 60 per 10 grams of Zarda and Tk 30 for Gul, both with a 60 percent duty.

A 15 percent VAT and 1 percent health development surcharge were recommended to remain unchanged, the statement read.

Participants said many countries, including India, Thailand and Turkey, have introduced specific taxes alongside ad valorem systems to raise minimum prices and improve tax collection.

They noted that 35.3 percent of adults in Bangladesh use tobacco and nearly 200,000 people die each year from related causes.

In the 2024-25 fiscal year, tobacco-related health and environmental costs were estimated at Tk 870 billion, about double the revenue generated from the sector.