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Tobacco-related losses hit Tk 87,000cr yearly

Bangladesh incurs nearly Tk 87,000 crore in annual losses from tobacco-related health complications and environmental damage, a figure that far surpasses the revenue earned from the tobacco industry, experts said.

Public health specialists and anti-tobacco campaigners on Saturday called on the government to substantially raise taxes and prices on tobacco products in the upcoming FY2026-27 budget, to reduce tobacco consumption and protect public health.

The call came at a roundtable discussion titled “Necessity of effective price and tax hike on tobacco products in the 2026-27 budget for public health protection”, organised by Policy Research for Development Alternatives (UBINIG) and the Anti-tobacco Alliance of Women (TABINAJ) at in Dhaka.

Presenting the keynote paper, Professor Dr Shafiun Nahin Shimul from Dhaka University’s Institute of Health Economics said tobacco products remain excessively affordable in Bangladesh compared to many countries.

He noted that while a Gold Leaf cigarette in Sri Lanka costs nearly 20 times more than a banana, cigarettes and bananas are sold at almost similar prices in Bangladesh.

To reduce tobacco use, Prof Shimul proposed merging the low and medium cigarette tiers and fixing the minimum retail price of a 10-stick cigarette pack at Tk 100.

He said such a move could prevent around 3.82 lakh youths from taking up smoking and save nearly 1.85 lakh people from premature deaths.

He also claimed the National Board of Revenue (NBR) lost around Tk 1 lakh crore over the last decade due to weak tobacco taxation policies. According to his estimates, the proposed reforms could increase government revenue from tobacco products to nearly Tk 85,000 crore.

Speaking at the event, lawmaker Bilkis Islam described tobacco addiction as even more harmful than narcotics.

She said public health damages caused by tobacco far outweigh the government’s earnings from the sector and vowed to raise the matter with the prime minister.

NCP leader and MP Mahmuda Alam Mitu criticised the absence of adequate policy debate in parliament and urged activists to build stronger public movements demanding tobacco tax reforms.

She also warned about the harmful impacts of smoking on youths and women’s reproductive health, including infertility and declining male sexual health.

Economics department chairman of Jagannath University, Prof Dr Sharif Mosharraf Hossain, stressed banning the sale of loose cigarettes, saying higher upfront costs for full packets could discourage young smokers.

Stamford University professor Dr Ahmad Kamruzzaman Majumder highlighted the dangers of “third-hand smoking”, where toxic chemicals remain on furniture and household surfaces long after smoking.

Speakers also called for tougher taxes on bidis and smokeless tobacco products, including zarda and gul, while urging the government to adopt stronger anti-tobacco policies to build a tobacco-free Bangladesh.