The prices of all tobacco products should be raised through the imposition of WHO-recommended specific taxation system. Anti-Tobacco Media Alliance (ATMA) made such demand on Sunday at the Conference Room of the National Board of Revenue (NBR) during the 2023-24 pre-budget meeting.
Abu Hena Md Rahmatul Muneem, Chairman, NBR presided over the event. During the meeting, ATMA informed that implementation of the tax proposals of anti-tobacco activists would raise BDT 9,600 crores in additional revenues, and prevent the premature deaths of 4.88 lakh adults and 4.92 lakh youths.
Notably, as per the conditions set by the International Monetary Fund (IMF) for its recent loan package, Bangladesh needs to raise the revenue by at least an additional 0.5 percent of its Gross Domestic Product (GDP) in FY 2023-24. A significant portion of this sum can be met by effectively imposing taxes on products such as tobacco that are detrimental to health.
ATMA delegation attending the pre-budget meeting with NBR officials includes Senior Journalist Sukanta Gupta Alak; Mortuza Haider Liton, Chief Crime Correspondent, bdnews24.com and convenor, ATMA; Nadira Kiron, Executive Director, Green TV and co-convener, ATMA; Doulot Akter Mala, Special Correspondent, The Financial Express; and Mizan Chowdhury, Senior Reporter, Daily Jugantor and co-convener, ATMA.
In the discussion, the NBR chairman said, “The idea of introducing specific taxes instead of ad-valorem in tobacco products is worth considering. The proposals presented here are rational, and we will review these.”
The budget proposals from ATMA for FY 2023-24 are as follows:
In the low-tier of cigarettes, the retail price should be set at 55 for 10 sticks, followed by BDT 35.75 as specific supplementary duty (SD); in the medium-tier, the retail price should be set at BDT 70 for 10 sticks, and followed by BDT 45.50 as specific supplementary duty; and in the high-tier, the retail price and supplementary duty for 10 sticks should be BDT 120 and 78.00 respectively.
In the premium tier, the numbers should be BDT 150 (prices for 10 sticks) and BDT 97.50 (specific supplementary duty).
For non-filtered bidis, the retail price should be BDT 25 for 25 sticks, followed by Taka 11.25 as specific supplementary duty. In case of filtered bidis, the retail price for 25 sticks should be set at BDT 20, to be followed by a BDT 9.00 as specific supplementary duty.
