Proposed changes to Bangladesh’s Tobacco Control Act could hurt the economy, investment, product quality, and tobacco-linked livelihoods. Photo credit: Simon Reza, Pexels.
Tobacco companies joined forces and raised serious concerns about the Bangladeshi government’s plan to push through proposed amendments to the Tobacco Control Act without stakeholder-inclusive consultation and without following a full parliamentary process.
The companies said the draft amendment could trigger wide-ranging negative effects on the economy, the investment climate, consumer product quality, and the livelihoods of communities linked to the tobacco value chain.
In a unified statement, British American Tobacco Bangladesh, Philip Morris Bangladesh, and JT International Bangladesh said:
“While we fully support the government’s commitment to public health, we believe that the certain measures proposed in the draft ordinance are not evidence-based, and will jeopardize the local livelihoods, further fuel an already growing illicit tobacco market, result in government tax revenue leak, and discourage further foreign investment – ultimately severely impacting an already declining industry.”
The companies warned that several provisions in the draft ordinance could undermine legal tobacco operations. They highlighted a proposed ingredient ban as one of the most damaging measures.
“Amongst multiple detrimental clauses, the draft includes an ingredient ban, which poses direct threat to the current cigarette operations in the country entirely. The ingredients included in the proposal for ban are essential for processing, manufacturing, and preservation, and are critical to ensure product integrity,” the statement said.
The firms also criticized proposals to require retailers to obtain licenses to sell cigarettes, saying the measure would disrupt the legal supply chain. They warned that licensing requirements could affect about 1.5 million retailers and interfere with operations linked to roughly 150,000 tobacco farmers until licenses become available through what they described as a fair and transparent process.
The statement also opposed a proposed ban on smokeless nicotine and tobacco products. The companies argued that such a move would eliminate lawful options for adult consumers seeking reduced-risk alternatives to combustible cigarettes and would push demand toward illicit products with no quality controls.
“Furthermore, the proposed prohibition of smokeless nicotine and tobacco products will take away legitimate choices for adult nicotine consumers, who are looking for reduced risk profile alternatives compared to combustible cigarettes, to transition from combustible tobacco,” the statement said.
“A de-facto ban on these important product categories will further boost an existing illicit market with compromised quality products, as seen in other countries such as India and Australia. The illicit products will not be controlled by any standards to ensure product quality, further increasing the risk for consumer access to these products.”
The companies urged the government to engage manufacturers, farmers, retailers, hawkers, printers, and other stakeholders across the value chain to avoid unintended consequences.
The firms pointed to the development of the original Tobacco Control Act in 2005 as an example of effective policymaking. They said the government held broad consultations at that time, resulting in a balanced framework that coincided with declining smoking rates and a contained illegal cigarette market.
Against a difficult economic backdrop, the companies warned that excluding stakeholders could place government revenue at risk. They said tobacco revenue growth averaged 12%–15% annually in recent years, excluding the Covid-19 period, but slowed to about 4%–5% in fiscal year 2024–25.
The industry said it directly and indirectly supports an estimated 4.4 million livelihoods, including more than 150,000 farmers and 1.5 million retailers. It also cited significant foreign direct investment in the sector, including JT International Bangladesh’s US$1.5 billion acquisition of a local tobacco business, described as the largest single FDI inflow into Bangladesh in the past 50 years.