Anti-tobacco organisations PROGGA (Knowledge for Progress) and ATMA have expressed strong disappointment over the proposed national budget for FY 2025–26, accusing the government of missing out on a vital opportunity to boost revenue and improve public health by leaving tobacco taxes unchanged.
Despite repeated calls from public health advocates, the budget maintains the current price structure and tax rates for all cigarette tiers, potentially causing the government to lose out on an estimated Tk 20,000 crore in additional revenue. Activists warn that this decision not only undercuts economic potential but also risks encouraging tobacco use among the youth.
To address this, PROGGA and ATMA have urged the government to merge the low and medium cigarette tiers—currently making up 80 percent of the market—into a single tier, setting a minimum retail price (MRP) of Tk 90 for 10 sticks.
They argue that such a move would discourage consumption while generating substantial revenue.
The organisations also criticised the budget’s failure to increase taxes on bidis for the sixth consecutive year and on smokeless tobacco products like jarda and gul. These products are widely used by low-income populations, particularly women, and have remained untouched despite rising inflation and income levels, effectively making them more affordable and accessible.
While the budget does propose some tax increases—raising the advance tax on cigarette manufacturers’ net sales from 3 percent to 5 percent, and the supplementary duty on imported cigarette paper from 150 percent to 300 percent—activists argue these changes fall far short of what is needed to combat tobacco-related harm.
“Tobacco claims 442 lives each day in Bangladesh,” said ABM Zubair, Executive Director of PROGGA. “If the proposals put forward by anti-tobacco campaigners are adopted, we can significantly cut down tobacco use, save lives, and generate vital public revenue.”
Currently, 35.3 percent of Bangladeshi adults (aged 15 and above) use tobacco. According to estimates, implementing the suggested reforms could help prevent the premature deaths of 1.7 million people, including 900,000 youth.
PROGGA and ATMA are calling on policymakers to revisit the tobacco tax structure before finalising the budget, in order to align fiscal policy with the government’s public health commitments and revenue potential.
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