Public Health on Top

The proposed budget for FY 2026-27, as very recently presented in Bangladesh Parliament, has left the price and tax of low-tier cigarettes nearly unchanged. Bidi, jarda and gul have seen no change at all in prices and taxes. The price of low-tier cigarette brands, which constitute about 75 percent of the total cigarette market of the country, has been increased by a negligible sum of BDT 0.20. Adjusted to inflation and increase in per capita income, the proposed budget will drastically slash the real prices of low-tier cigarettes, bidi, and smokeless tobacco products, increase affordability and encourage use among the youth and low-income demographic. It should be noted that tobacco companies managed to maintain a robust engagement throughout the budget formulation process and as the proposed budget suggests, successfully influenced the government to get its way.

In another move that is vastly detrimental to public health, the proposed budget has also imposed taxes on nicotine pouches and heated tobacco, which effectively provided these emerging tobacco products a legal pass. Notably, the Ministry of Health previously proposed a ban on such products which has been eliminated from the finalized piece.

To safeguard public health and increase revenue income, the finalized budget must contain necessary reform in the tobacco taxation structure. Raising prices of all tobacco products and implementation of reform proposals put forth by anti-tobacco activists will result in the inflow of an additional revenue amounting to BDT 44,000 crore and in long term, prevent the premature death of 400,000 lives.