Anti-tobacco organizations in Bangladesh said mid-year tobacco tax additions advanced public health protections and created the potential for additional government revenue. Though not planned in the original budget, the adjustments raised retail prices of cigarettes on a tiered scale between 8% and 20%, and imposed a uniform supplementary duty rate of 67% on all tiers.
Abdullah Nadvi, research director of Unnayan Shamannay, called for the government to not only maintain the taxation but to bolster it 2025-26 fiscal budget, saying the government could collect an additional 40% in tobacco revenue without changing the duty rate.
Dr. Mahfuz Kabir, research director at BIIISS, said that effective taxation could increase government revenue from cigarettes by 11% to 28%. He warned that failing to adjust cigarette prices with inflation has led to a steady rise in sales in recent years.
