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Experts for further increase in tobacco tax, price


Published : 09 Mar 2021 09:21 PM

Anti Tobacco Media Alliance - ATMA urges for imposition of specific taxes and price hike for all tobacco products at a pre-budget meeting with NBR held on Tuesday .

ATMA leaders hope that implementing the proposed tobacco price and tax measures would prevent around 800,000 premature deaths and additionally earn BDT 3,400 crore in revenues. 

The recent years have barely seen any decline in the prevalence of cigarette use. Owing to the extremely low tax base and tax rates, tobacco products of all types, i.e. cigarettes, bidis and smokeless tobacco items (jarda and gul) have remained highly affordable. 

The existing tobacco taxation structure is highly complex and incapable of doing enough to discourage the use of tobacco products. As a result, the current tobacco taxation structure fails to contribute, as it is supposed to, to the achievement of a tobacco-free Bangladesh, as declared by the Honorable PM. 

According to GATS 2017, 37.8 million adults (15 y/o and above) in Bangladesh use tobacco (smoke and smokeless) and 38.4 million become victims of passive smoking at work, public transport and other public places. Tobacco is responsible for around 126,000 deaths a year in Bangladesh. 

In 2017-18 FY alone, tobacco incurred a financial loss (from medical expenses and loss of productivity) of more than BDT 30,560 crore. Increasing tobacco prices and taxes is safeguarding public health since such move discourages the youth from developing the habit of tobacco use and also effectively encourages the current users, particularly the poor, to quit.  

In the pre-budget meeting NBR officials were present along with ATMA representatives that include MonirHossainLiton, Joint Chief News Editor, Ekattor Television; MortuzaHaiderLiton, Chief Crime Correspondent, bdnews24.com and convenor, ATMA; NadiraKiron, News Editor, ATN Bangla and co-convener, ATMA; DoulotAkter Mala, Special Correspondent, The Financial Express; and MizanChowdhury, Senior Reporter, Daily Jugantor and co-convener, ATMA.  In the discussion, the NBR member (VAT policy) Md. MasudSadiq said, the proposals put forward by ATMA will be sincerely considered. 

ATMA representatives also presented its budget proposals for FY 2021-22 and handed over a copy to NBR. In the discussion, ATMA presented following proposals to be realized in the upcoming budget for FY 2021-22:

The budget proposals mincludemposing uniform tax rates in all cigarette tiers (65 percent supplementary duty on final retail price) and introduce specific excise tax, in the low-tier, the retail price should be set at 50 for 10 sticks, followed by BDT 32.50 as specific supplementary duty (SD), n the medium-tier, set the retail price at BDT 70 for 10 sticks and BDT 45.50 should be imposed as specific supplementary duty (SD), n the high-tier, the retail price should be set at 110for 10 sticks, followed by BDT 71.50 as specific supplementary duty (SD) and in the premium-tier, set the retail price at BDT 140 for 10 sticks and BDT 91 should be imposed as specific supplementary duty (SD).