The study estimates the economic issuesrelated to tobacco. Cigarette and bidi production inBangladesh have been increasing since 1980. Imports andexports have fluctuated, but there is a persistent negativetrade balance in tobacco and tobacco products. Recentprevalence trends are not clear, but remain over 40% amongmen. National statistics put smoking among women at 4-5%,but tobacco chewing is common among women, and undocumented.Prevalence is much higher for men with lower incomes andeducation. Policies to reduce tobacco use are summarized,they have been relatively weak, but would be greatlyenhanced if proposed legislation is enacted. Money spent ontobacco products by poor people could do much to reducemalnutrition if it were spent on food instead. Real pricesof cigarettes have fallen, and incomes have risen,stimulating consumption. Real price increases would helpreduce demand, by 3% for every 10 real price increase. Taxesare relatively low (even for the highest priced, most taxedbrands, only 55% of the retail price, plus a 15% value-addedtax). Higher taxes would increase total revenues, already 7%of total government revenues. Inadequate data exist toestimate the health care costs attributable to tobacco usein Bangladesh.