The Economics of Tobacco and Tobacco Taxation in Bangladesh

In this report, we briefly describe the tobacco environment in Bangladesh, beginning with a discussion of tobacco use and its health and economic
consequences, followed by a short review of the supply of tobacco and tobacco products. Given available data, most of the discussion focuses on smoked tobacco
products, particularly manufactured cigarettes and bidis. We then provide a short description of tobacco control policies in Bangladesh, followed by a more
detailed discussion of tobacco taxes and prices. Existing evidence on the effects of prices on tobacco use is presented and this evidence is used to estimate the
impact of alternative tax increases on consumption, excise tax revenues, tobacco use prevalence, and future deaths from tobacco use among those in the current
population cohort. The report concludes with recommendations for future tobacco tax policy in Bangladesh.

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May 2012

Authors:
  • Abul Barkat
  • Nigar Nargis
  • Md. Shahnewaz Khan
  • Sharmina Bashir
  • Ashraf Uddin Chowdhury
  • Mashfiqur Rahman
  • Ananda Kumar Pk.
  • Frank J. Chaloupka