2024-04-01 14:36:59
Increasing the price of tobacco products through effective taxation will increase revenue, reduce government spending on tobacco use and tobacco-related diseases. In the upcoming fiscal year 2024-25 budget, the prices of tobacco products, especially low-end cigarettes, should be raised beyond the purchasing power of the youth and the poor.
These discussions came up at a journalist workshop on ‘Tobacco Tax and Price Action: Budget 2024-25’ held at BMA Bhavan in the capital on Monday (April 1). Research and advocacy organization Pragya (Knowledge for Progress) and Anti Tobacco Media Alliance (Atma) jointly organized the workshop. 27 journalists working in print, television and online media participated in the workshop.
It was informed in the workshop that all types of tobacco products are very cheap in Bangladesh and they are getting cheaper compared to everyday products. Analyzing the average retail price of daily commodities in 7 metropolitan cities (Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, Barisal and Rangpur) obtained from the Directorate of Agriculture Marketing, it has been found that the price of open sugar has increased by 89 percent in 2023 (July 4) compared to 2021 (July 4). , potatoes by 87 percent, open flour by 75 percent, pangasius fish by 47 percent, eggs by 43 percent, soybean oil by 34 percent, milk powder by 30 percent, and broiler chicken by 27 percent. But at the same time, the prices of cigarettes in different categories have increased by only 6 percent to 15 percent.
The workshop also informed that increasing the retail price of cigarettes and supplementary duty at a lower level than other levels would encourage relatively low-income tobacco users to quit smoking. Currently about 75 percent of cigarette users are consumers of low-cost cigarettes and at this level the supplementary duty rate is only 58 percent.
The proposals presented at the workshop regarding tax and price hike of tobacco products in the upcoming budget are to increase the retail price of every 10 cigarettes from Tk 45 to Tk 60 at the lower level and impose 63 percent supplementary duty. To increase the retail price of 10 Shalaka cigarettes at the middle level from Tk 67 to Tk 80, at the high level the retail price of 10 Shalaka cigarettes from Tk 113 to Tk 130 and at the premium level to increase the retail price of each 10 Shalaka cigarette from Tk 150 to Tk 170. Retaining supplementary duty at 65 per cent at these three levels.
Imposing a supplementary duty of 45 per cent by fixing the retail price of 25 Shalaka bidis without filter at Tk 25 and retail price of 20 Shalaka bidis with filter at Tk 20. Fixing the retail price of jorda at Tk 55 per 10 grams and the retail price of Gul at Tk 30 per 10 grams and imposing a supplementary duty of 60 per cent. Besides, 15 percent value added tax (VAT) and 1 percent health promotion surcharge on the retail price of all tobacco products will be retained.
It was informed in the workshop that if the anti-tobacco tax and price proposals are implemented, an additional revenue of Tk 10,000 crore will be earned. This increased revenue will contribute significantly to addressing the ongoing financial crisis. At the same time, it will be possible to prevent the premature death of more than eleven lakh people, including about five lakh young people, in the long run.
World Health Organization Bangladesh National Professional Officer (NCD) presented the main presentation to the journalists in the workshop. Syed Mahfuzul Haque and Pragya’s Tobacco Control Program Head Hasan Shahriar. Program Manager (Bangladesh) of Campaign for Tobacco Free Kids (CTFK) was present as a speaker. Abdus Salam, convenor Liton Haider of Anti Tobacco Media Alliance-Atma, co-convenor Mizan Chowdhury and executive director of Pragya ABM Zubair.
It should be noted that more than 1 lakh 61 thousand people die every year due to diseases related to tobacco use. In the fiscal year 2017-18, the economic loss of tobacco use is Tk 30,560 crore, which is much higher than the revenue earned from the tobacco sector (Tk 22,810 crore) during the same period. High tobacco prices discourage young people from starting to use tobacco and encourage existing users, especially the poor, to quit.