In the upcoming fiscal year 2024-25 budget, tax and price hikes on all types of tobacco products can effectively curb tobacco use and increase revenue for the government. Speakers expressed such opinion on Saturday at a workshop titled "Effective Tax and Price Increase of Tobacco Products in the FY 2024-25 Budget" organized by Development Organisation of the Rural Poor (DORP) at Economic Reporters Forum (ERF) Auditorium, in Paltan of the capital. Speakers noted that if higher tax is imposed on tobacco products in the budget for the fiscal year 2024-25, the revenue from the cigarettes alone will be about Tk 47000 crores, which is about 28% more than the previous year. In addition, about 1.5 million adults would be encouraged to quit smoking, 10 million young people would be discouraged from starting it, and in the long term about 1.1 million premature deaths related to tobacco use would be prevented.
It was also mentioned in the workshop session that raising the price of tobacco products by increasing taxes to discourage tobacco use is an internationally followed method, but the current ad-valorem tobacco tax structure in Bangladesh is not effective in reducing tobacco use.
In the financial year 2017-18 alone, the economic loss for tobacco use (medical expenses and loss of productivity) was Tk 30,560 crore.
Eminent economist and former governor of Bangladesh Bank Dr Atiur Rahman graced the event as the chief guest. He said, "Bangladesh is one of the most tobacco consuming countries in the world today.
The smoking rate among citizens aged 15 and over in this country is 18%. 1 lakh 61 thousand people die in the country due to diseases related to tobacco use every year. Hence Tobacco should be taken out of the reach of the public through taxes and price hikes.”
Abdullah Nadvi, Director of Research, Unnayan Samannay, presented the keynote at the event moderated by Rubina Islam, Program Coordinator, DORP.
Dr Shafiun Nahin Shimul, Associate Professor, Institute of Health Economics, University of Dhaka and Mohammad Refayet Ullah Mridha, President, ERF gave insightful speeches on the burning issue.
DORP Executive Advisor Freedom Fighter Azhar Ali Talukder announced the opening of the workshop and Chairman of the organization Mohammad Nurul Amin gave vote of thanks.