Two-day workshop titled "Tobacco Tax and Price Measures: Budget FY 2025-26" was held at the BIP Conference Room in the capital today. Photo : BSS

DHAKA, Mar 13, 2025 (BSS) - Speakers at a workshop have called for an overhaul of the cigarette tax structure to discourage smoking and boost government's revenue.

They observed that tobacco products in Bangladesh remain inexpensive. Due to the absence of an effective tax structure, these products are becoming even cheaper and more affordable compared to essential commodities.

They stated that the very narrow price difference between low and medium-tier cigarettes allows consumers to choose brands belonging to any of these two tiers. To discourage consumers from smoking and to hike the government's revenue inflow, this glaring loophole can be plugged in the upcoming fiscal year 2025-26 national budget by merging low and medium price tiers into one and reducing the number of price tiers to three.

They came up with the suggestion at the two-day workshop titled "Tobacco Tax and Price Measures: Budget FY 2025-26" at the BIP Conference Room of the capital on March 12 and March 13, according to a press release.

The workshop organised jointly by PROGGA (Knowledge for Progress) and ATMA (Anti-Tobacco Media Alliance) was attended by 50 journalists from print, television, and online media outlets.

They also suggested retaining 15 percent VAT on the retail prices of tobacco products and continuing the existing 1 percent health development surcharge.

In support of the proposals, the speakers informed that budget proposals placed by anti-tobacco organisations, if realised, can help the government raise a staggering Taka 20,000 crore in additional revenue, which will come in handy in reaching revenue targets and improving public health.

Implementation of such proposals, in the long run, will also help prevent the premature deaths of 1.7 million Bangladeshis, including nearly 900,000 youths, they expressed hope. 

The discussants in the workshop include the Daily Janakantha City Editor Kawser Rahman, The Business Standard Deputy Editor Md. Sazzadur Rahman, ATMA Convener Mortuza Haider Liton, ATMA Co-conveners Nadira Kiron and Mizan Chowdhury, PROGGA Executive Director ABM Zubair, and PROGGA Head of Tobacco Control Md. Hasan Shahriar.