The World Health Organization [1] has estimated that more than eight million people died worldwide every year from tobacco consumption. Most importantly, fifty percent of users died due to tobaccoborne diseases and eighty percent of total users are from lower-income countries. As part of fiscal policy, tax, as well as price increasing method, is considered the most effective way to reduce cigarette consumption in any nation. The Government of Bangladesh has tried to reduce tobacco consumption without hampering revenue collection from tobacco tax. Consequently, the strategic decision had been taken to balance between those two factions over the years. In this paper, all the data had been collected from secondary sources. A regression analysis had been conducted in the research to find out the relation between tobacco consumption with tobacco tax and education rate. It had been found that a higher tax rate and increased education rate had a negative impact on tobacco consumption tendency in the context of Bangladesh.

Keywords : Tobacco Consumption; Tobacco Tax in Bangladesh; Education Rate; Tobacco Items; Health Hazards.