The Anti-Tobacco Media Alliance (ATMA) has proposed a major overhaul of Bangladesh’s tobacco tax structure, saying the reforms could generate an additional Tk 44,000 crore in revenue and prevent nearly 400,000 premature deaths in the long run.

The proposal was presented on Tuesday during a pre-budget discussion held at the conference room of the National Board of Revenue (NBR).

ATMA recommended merging the low and medium cigarette price tiers into a single slab and fixing the retail price at Tk 100 per 10 sticks, while setting Tk 150 for the high tier and Tk 200 or above for premium cigarettes.

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

Speaking at the event, NBR Chairman Md. Abdur Rahman Khan said higher tobacco taxes and prices have already reduced cigarette consumption, adding that further increases would be considered in the future.

ATMA leaders said weak price adjustments over the years have made cigarettes and other tobacco products relatively cheaper compared to essential goods. 

Citing 2025 World Health Organization data, they noted that cigarette prices in Bangladesh remain lower than in Sri Lanka, Maldives, Bhutan, Nepal and India.

The alliance also urged the government to introduce stronger specific taxes, a model already used in 69 countries including India, Thailand and Turkey, saying it is more effective in raising minimum tobacco prices and easier to administer.

For bidi products, ATMA proposed a uniform retail price of Tk 30 for 20 sticks with a 50 percent supplementary duty. 

For smokeless tobacco products, it suggested retail prices of Tk 60 for zarda and Tk 30 for gul per 10 grams, both with a 60 percent supplementary duty. 

It also recommended retaining the current 15 percent VAT and 1 percent health development surcharge on all tobacco items.

According to data presented at the meeting, 35.3 percent of adults in Bangladesh use tobacco, while nearly 200,000 people die annually from tobacco-related causes. 

In fiscal year 2024-25, tobacco-related health and environmental losses were estimated at Tk 87,000 crore—double the revenue earned from the sector.

Among ATMA representatives attending the discussion were Kawser Rahman, Md. Monir Hossain Liton, Md. Shafiqul Islam, Murtuza Haider Liton, Nadira Kiran and Mizan Chowdhury.

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