Different anti-tobacco organisations have given instant reaction over the proposed tobacco tax in the proposed national budget for 2021-2022 fiscal year, which was placed in the Parliament on Thursday (June 3).
According to the anti-tobacco platforms, although there is a target to bring tobacco use down to 5% to make Bangladesh tobacco-free by 2040, the proposed tax will have no contribution to reduce the tobacco use in the country. However, the tax system will support the tobacco companies to generate new smokers.
In a joint statement, Bangladesh Anti-Tobacco Alliance (BATA), Bangladesh Network for Tobacco Tax Policy (BNTTP) and Tamak Birodhi Nari Jote (TABINAJ) said that although tax increase is the effective measure for reducing tobacco use, it has been ignored in the proposed budget. The government has not given importance on the issue even in the current pandemic situation.
In the statement, it was said that the proposed price and tax on tobacco products are frustrating. For this reason, the tobacco related disease and death would increase, while the government will lose a huge amount of revenue. However, the tobacco companies will be benefited for not introducing specific tax system.
Dr Rumana Huque, a professor of Department of Economics of Dhaka University and convener of the BNTTP, said that in the proposed budget without bringing any change in the price of lower and middle tier, the 10 sticks cigarette price remains same Tk. 39 and Tk. 63 as previous year. However, there are also no changes in the price of bidi, jorda and gul. But, with the increase of per capita income, the price of regular essential products increases. Considering that, the price of tobacco products is not increased comparatively, she added.
She commented that the proposed tobacco tax would increase the tobacco companies’ earning due to the faulty ad-velorem system. She expects that considering the protection of public health and increase of revenue, the proposed budget will be changed by adopting specific tax system and imposing the rational amount of price and tax of tobacco products as per our recommendations.
About 72% smokers in Bangladesh smoke lower tier cigarettes. The lower and middle tier cigarette users combine almost 88% of smokers. The number will increase and proposed budget will encourage the youths to start smoking due to not increasing the price.
The anti-tobacco organisations said that they have submitted proposal of tobacco taxation and prices with the demand of imposing specific tax system. If the proposed tax is imposed, about 11 lakh adult smokers will quit and 8 lakh new smokers will be discouraged.
At the same time, the government revenue will increase about 3400 crore.