Photo : Messenger
The government will get an additional revenue of more than Tk 10,000 crore if cigarette prices are increased at four tiers in the 2024-25 fiscal year budget, speakers told a workshop on Saturday.
Besides, cigarette consumption will decrease by about 2 per cent from the current 15.1 per cent if prices are increased, they said while addressing the workshop titled "Implementation and Price Increase in Tobacco Products in the Upcoming Budget 2024-25".
The workshop was organised by the Development Organisation of the Rural Poor (DORP) and the Economic Reporters Forum (ERF) at Paltan in the capital.
Of the four tiers, speakers proposed raising the prices of low-tier cigarettes from Tk 45 to Tk 60 per pack, mid-range cigarettes from Tk 67 to Tk 80 per pack, high-end cigarettes from Tk 113 to Tk 130 per pack, and premium cigarettes from Tk 150 to Tk 170 per pack.
DORP Chairman Mohammad Nurul Amin presided over the workshop while eminent economist and former governor of the Bangladesh Bank Dr Atiur Rahman was also present.
Abdullah Nadvi, director of research at Unnayan Shamannay, presented the keynote at the event moderated by Rubina Islam, programme coordinator of DORP.
Dr Shafiun Nahin Shimul, associate professor at the Institute of Health Economics under the University of Dhaka, and Mohammad Refayet Ullah Mridha, president of ERF, gave speeches. DORP Executive Advisor and freedom fighter Azhar Ali Talukder announced the opening of the workshop.
The speakers said tax and price hikes on all types of tobacco products can effectively curb tobacco use and increase revenue for the government in the upcoming budget, which would play an effective role in implementing the prime minister's vision to build a tobacco-free Bangladesh before 2040.
They said if higher tax is imposed on tobacco products, the revenue from cigarettes alone will be about Tk 47,000 crore, which will be about 28 per cent more than the previous year.
In addition, about 1.5 crore adults would be encouraged to quit smoking, 10 million young people would be discouraged from starting it, and about 1.1 crore premature deaths related to tobacco use could be prevented in the long-term, they noted.
The speakers further said raising the prices of tobacco products by increasing taxes to discourage tobacco use is a method followed internationally. They observed that the current ad valorem tobacco tax structure in Bangladesh is not effective in reducing tobacco use.
In the financial year 2017-18, economic losses caused by tobacco use (medical expenses and loss of productivity) were Tk 30,560 crore, they added.
Recommendations for tobacco tax and price hikes in the upcoming budget were presented at the workshop to implement the directives of the prime minister and protect public health from the negative effects of tobacco.
One of the recommendations is introducing specific excise (supplementary) duty based on the price level with uniform coverage on all cigarette brands.
In other words, it was recommended to impose a specific supplementary tax of Tk 37.4 at the lower level by fixing the retail price of every 10 cigarettes at Tk 60, Tk 52.5 at the middle level by fixing the retail price of every 10 cigarettes at Tk 80, Tk 84.5 at the high level by fixing the retail price of every 10 cigarettes at Tk 130, and Tk 110.5 at the premium level by fixing the retail price of every 10 cigarettes at Tk 170.
Another recommendation is introducing specific excise (supplementary) duty on filtered and unfiltered bidis. In other words, it was recommended to impose specific supplementary tax of Tk 11.25 by fixing the retail price of 25-stick bidis without filter at Tk 25 and Tk 9 by fixing the retail price of 20-stick filtered bidis at Tk 20.
Atiur Rahman said Bangladesh is one of the most tobacco-consuming countries in the world now, with the smoking rate being 18 per cent among citizens aged 15 and above.
He also said 1.61 lakh 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.”
Messenger/Fameema
