In the proposed national budget for fiscal year 2024-25, the government plans to increase tobacco tax rates to 66% across all types of cigarettes and tobacco products. The tax increase, aimed at revenue generation, will result in retail price hikes of Tk5 or more per tier and incremental duty raises of 1% to 2%. Tobacco contributes approximately 13% to annual government revenue. The Bangladesh Economic Association estimates that a 66% tax could reduce smoking by 66% and generate Tk1,700 crore in revenue. Currently, 3.78 crore people, or 35.3% of the population, are tobacco users, with around 15 lakh individuals suffering from tobacco-related illnesses. These diseases claim the lives of approximately 161,000 people annually and result in significant economic losses. In fiscal year 2017-18 alone, tobacco usage incurred Tk30,560 crore in economic losses, surpassing revenue from the sector at Tk22,810 crore.
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