The proposed budget for 2026-27 is expected to make tobacco products more accessible and result in missed revenue opportunities, according to anti-tobacco organizations Progga and ATIMA. The budget maintains the prices and tax rates of lower-tier cigarettes, beedi, gul, and jarda, making them cheaper in real terms due to inflation and increased per capita income. This is likely to increase tobacco use, related illnesses, and deaths, while also reducing potential government revenue. The budget does not introduce significant reforms in the tax structure, and the price increases for higher-tier cigarettes are minimal compared to the rise in essential goods. Progga and ATIMA suggest that consolidating lower and middle-tier cigarettes, introducing specific taxes, and increasing the prices of all tobacco products could generate an additional Tk 44,000 crore in revenue and prevent around 400,000 premature deaths.
Impact on Public Health and Revenue
Progga and ATIMA argue that the unchanged prices and tax rates for beedi, jarda, and gul will make these products even cheaper and more accessible, particularly affecting women and the poor. The budget proposes new prices and taxes for nicotine pouches and heated tobacco products but does not ban them despite health ministry recommendations. The organizations call for the inclusion of their reform proposals in the final budget to protect public health and increase revenue.
