Members of the Women MPs’ Forum Against Tobacco on Tuesday called for a more effective review of the tax and pricing measures for low-tier cigarettes and smokeless tobacco products in the proposed national budget for FY 2026–27.
They expressed this view during a post-budget discussion held at the Parliament LD Hall.
The meeting was informed that public health and tobacco control experts had proposed simplifying the cigarette tax structure by reducing the existing four-tier cigarette market to three tiers and increasing prices accordingly. Since the prices of low-tier and medium-tier cigarettes are very close, consumers can easily switch to a slightly cheaper brand when prices rise in one tier.
To address this issue, experts proposed merging the low and medium tiers and setting the retail price of a 10-stick pack at TK 100. They also recommended retaining the existing 67 per cent supplementary duty on all cigarette tiers while introducing a specific tax of TK 4 per 10-stick pack.
In FY 2023–24, a total of 68.89 billion low-tier cigarette sticks were sold in Bangladesh. At an additional profit margin of Tk 0.80 per stick, tobacco companies could earn approximately Tk 55.12 billion (Tk 5,512 crore) in untaxed profits. Consequently, the government stands to lose a significant amount of potential tax revenue.
Furthermore, the proposed budget did not incorporate the recommendation to impose a specific tax of Tk 4 per 10-stick cigarette pack. Maintaining the 67% Supplementary Duty without introducing a specific tax would allow tobacco companies to generate substantial additional profits.
The participants therefore urged the government to reconsider the tax and pricing measures for low-tier cigarettes and smokeless tobacco products in the proposed FY 2026–27 budget, taking into account the recommendations of public health and tobacco control experts.
The discussion was chaired by Rasheda Begum Hira, Vice-President of the Women MPs’ Forum Against Tobacco. Members of Parliament present at the event included Newaz Halima Arly, Bilkis Islam, Farida Yeasmin, Sabira Sultana, Sunsila Jabrin, Ferdousi Ahmed, Jahrat Adib Chowdhury, Salina Sultana, Shcotara Akter, Rezeka Sultana, Nadia Pathan Papon, Momtaj Alo, Helen Jerin Khan and Suraia Zarin. Also present was Shahin Akter Dolly, Executive Director of Nari Maitree.
All participants called for a reconsideration of the proposed tax and pricing measures for low-tier cigarettes and smokeless tobacco products in the national budget in order to protect public health and curb excessive profits by tobacco companies.
