BTCA Says FY27 Budget Weakens Tobacco Control

Bangladesh Tobacco Control Advocates (BTCA) on Friday expressed concern over the proposed national budget for FY2026–27, alleging that several measures could benefit the tobacco industry and undermine efforts to build a tobacco-free Bangladesh.

In a joint statement signed by BTCA Convener Iqbal Masud and several moderators, the organisation criticised the decision to bring nicotine pouches, heated tobacco products (HTPs), e-cigarettes and vape products under the tax framework.

According to BTCA, public health experts have long advocated banning these emerging nicotine products. However, the proposed budget and a draft amendment to tobacco control laws could pave the way for their entry into the market, potentially increasing nicotine addiction among adolescents and young adults.

The organisation warned that while such measures may generate short-term revenue, they could lead to higher long-term healthcare costs and economic losses due to tobacco-related illnesses, lower productivity and premature deaths.

BTCA also described the proposed increase in cigarette prices as inadequate from a public health perspective. It noted that nearly 75 percent of cigarettes sold in the country belong to the low-price segment, while the proposed increase for low-tier cigarettes is only Tk2 per pack—an amount it believes is unlikely to significantly reduce consumption amid rising inflation.

The organisation further criticised the decision not to introduce a specific excise tax in addition to the existing ad valorem tax system, arguing that the omission may reduce potential revenue collection and leave room for tobacco companies to exploit pricing loopholes.

BTCA said the limited price increase for low-tier cigarettes, along with relatively small tax adjustments on bidis, zarda and gul, as well as the effective legalisation of new nicotine products, could weaken tobacco control efforts.

However, the organisation welcomed several proposed measures, including the introduction of QR codes on cigarette tax stamps, a digital track-and-trace system and stronger monitoring of the tobacco supply chain.

It said these initiatives could help reduce tax evasion and improve revenue collection.

BTCA urged the government and the National Board of Revenue to review the proposed measures and incorporate recommendations from public health experts to ensure public health concerns remain central to fiscal policymaking.