Bangladesh Tobacco Tax: Policy Exchange has released a comprehensive report on March 16, 2026, analyzing Bangladesh’s tobacco tax framework. The findings were presented to the National Board of Revenue (NBR) to foster evidence-based policy discussions on tobacco taxation reforms.
The report highlights the potential benefits of adopting alternative excise tax structures, balancing government revenue objectives with public health priorities. Initial insights were shared with NBR officials, initiating technical engagement for refined analysis.
The study includes a simulation of Bangladesh’s current tobacco tax system, evaluating how alternative structures could impact revenue, consumption, and market dynamics over the next decade. The analysis utilizes household survey data, historical tax records, and global modelling frameworks.
Preliminary findings indicate that transitioning from the current ad valorem tax system to a specific excise tax regime could generate an additional Tk22,000 crore in revenue over ten years. This shift could also reduce tobacco consumption by an estimated 8%.
Tobacco taxation remains a significant revenue source in Bangladesh, contributing Tk40,000 crore last fiscal year, about 9% of NBR’s total revenue. The report aims to strengthen the analytical foundation for future tax policy, combining independent research with administrative data.
Published in SouthAsianDesk, March 17, 2026
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