State Minister Advocates Tobacco Tax Hikes to Boost Revenue and Health Expenditure

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Dhaka: State Minister for Planning Md. Junaid Abdur Rahim Saki on Monday underscored the importance of augmenting national revenues by prioritizing higher taxes on tobacco, aiming to enhance both fiscal stability and public health. Addressing a seminar titled ‘Necessity of Effective Tobacco Tax and Price Hikes in the Upcoming FY 2026-27 Budget to Protect Public Health,’ Saki emphasized the need to reduce dependency on loans for the nation’s development.



According to United News of Bangladesh, the seminar was a collaborative effort by the Economic Reporters’ Forum (ERF) and the Development Organisation of the Rural Poor (DORP), held at the ERF auditorium. Saki expressed dissatisfaction with the digitalization efforts of the National Board of Revenue (NBR), criticizing the ineffectiveness despite the Tk 400 crore investment. He highlighted the necessity of genuine institutional capacity to ensure sustainable progress.



Saki advocated for setting base prices and taxes on tobacco products to discourage consumption, while also supporting the rights of tobacco farmers and workers. He remarked that fair wages for laborers would naturally lead to higher product prices, indirectly curbing tobacco use. Addressing revenue losses due to “fake bandrolls” smuggled from abroad, Saki urged the NBR to implement a specialized monitoring system.



Special Guest Md. Mashiur Rahman, First Secretary (VAT Policy) of the NBR, noted a decline in cigarette supply following 2024 tax measures and recommended a licensing system for retail sales and improved “tracking and tracing” in collaboration with the Health Ministry.



Presenting a research paper, Professor Dr. Shafiun Nahin Shimul from Dhaka University suggested merging low and medium-tier cigarette markets, proposing higher supplementary duties. Former Secretary Md. Azhar Ali Talukdar warned that government revenue from tobacco is overshadowed by the expenditure on health and environmental damages.



The seminar concluded with insights from ERF president Doulat Akter Mala and General Secretary Abul Kashem, echoing the need for effective fiscal measures to enhance public health outcomes.