BTCA flags policy concerns in tobacco budget

Public health advocates have raised concerns that the proposed national budget for the Fiscal Year (FY) 2026-27 could undermine Bangladesh’s long-term objective of becoming tobacco-free, arguing that several fiscal measures may instead strengthen the tobacco industry.

In a statement issued on Friday, the Bangladesh Tobacco Control Advocates (BTCA) said the draft budget and related regulatory changes appear to conflict with national public health goals by allowing broader market access to emerging nicotine products.

The statement, signed by BTCA Convener Iqbal Masud and Moderators Sushanta Sinha, Syeda Ananya Rahman, Farhana Jaman Liza, Samiul Hasan Sajeeb, Abu Raihan and Ibrahim Khalil, criticised the inclusion of nicotine pouches, heated tobacco products (HTPs), e-cigarettes and vape products within the tax framework. According to BTCA, these items should instead be banned in line with earlier public health recommendations.

The organisation warned that legalising and taxing such products could increase exposure to nicotine among adolescents and young adults, potentially leading to long-term addiction risks.

While acknowledging the revenue potential of the measures, BTCA argued that any short-term fiscal gain could be outweighed by higher healthcare costs, productivity losses and premature deaths linked to tobacco-related diseases.

The group also described the proposed Tk 2 per pack increase on low-tier cigarettes as inadequate, noting that around 75 percent of cigarettes in Bangladesh fall within this segment, making the price adjustment unlikely to significantly reduce consumption amid inflationary pressures.

It further criticised the absence of a specific excise tax in addition to the existing ad valorem system, claiming this could limit revenue efficiency and allow tax avoidance by tobacco companies.

However, BTCA welcomed certain proposals in the budget, including the introduction of QR codes on cigarette tax stamps, a digital track-and-trace system, and strengthened monitoring of the tobacco supply chain, saying these could help reduce tax evasion and improve revenue collection.

The organisation has urged the government and the National Board of Revenue (NBR) to reconsider the proposals and integrate expert public health recommendations into fiscal policy, placing greater emphasis on health protection.