Tobacco control advocates warn proposed budget revisions fall short on public health goals
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Anti-tobacco advocacy groups Progga and the Anti-Tobacco Media Alliance (ATMA) have sharply criticized the proposed 2026-27 national budget, warning that it fails to curb the accessibility of tobacco products and squanders a significant opportunity to increase government revenue. The organizations argue that the government’s failure to implement structural reforms in tobacco taxation will lead to a rise in consumption, exacerbating public health risks and increasing the rate of tobacco-related illnesses and premature deaths.
The organizations pointed out that the marginal price hike proposed for low-tier cigarettes—an increase of only 3.33 percent—fails to keep pace with the 10.27 percent growth in per capita income. Consequently, the real price of cigarettes will effectively decline, making them more affordable for low-income populations and the youth. Since low-tier cigarettes currently command approximately 75 percent of the market, the groups expressed alarm that this pricing strategy will specifically drive consumption among the country’s most vulnerable demographics.
Regarding higher-tier products, the budget proposes increases ranging from 13.5 percent to 15 percent for middle, high, and premium cigarette tiers. Progga and ATMA contend that these increases are insufficient compared to the rising cost of living. Furthermore, because the budget does not include fundamental reforms to the tobacco tax structure, critics argue that a substantial portion of the price hike will be absorbed by tobacco companies as excess profit, which will likely be reinvested to expand market reach rather than contributing to public health gains.
The advocacy groups maintain that the government ignored calls to merge the low and middle tiers into a single price point of 100 taka per 10-stick pack, paired with a specific excise tax. They estimate that adopting their proposed tax reform—which includes a 4-taka specific tax per 10-stick pack—would have generated an additional 44,000 crore taka in revenue while preventing approximately 400,000 premature deaths in the long term.
Concerns were also raised regarding the lack of tax adjustments for bidis, gul, and jarda, which remain unchanged in the proposed budget. Progga and ATMA warned that by keeping these highly harmful products affordable, the government is disproportionately exposing women and the poor to severe health risks. The groups also noted that despite recommendations from the Ministry of Health to ban newer products like nicotine pouches and heated tobacco, the current fiscal framework instead facilitates their continued presence in the market.
Progga’s Executive Director, ABM Zubair, emphasized that the proposed measures would ultimately make tobacco more accessible, encouraging usage among the youth and impoverished citizens. With over 35 percent of Bangladeshi adults currently using tobacco and approximately 200,000 people dying annually from tobacco-related diseases, the organizations have urged the government to revise the budget. They highlight that the economic burden of tobacco—estimated at 87,000 crore taka per year due to health and environmental damages—necessitates immediate legislative action to prioritize public welfare over industry profits.
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