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To safeguard public health, research and advocacy organisations PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA) have called for an effective hike in the prices of tobacco products in the upcoming FY25 budget.
They presented their tobacco taxation and pricing-related proposals on Saturday during a press conference at the National Press Club in the capital.
Mahfuz Kabir, research director at Bangladesh Institute of International and Strategic Studies (BIISS), proposed raising the supplementary duty to 63 per cent from 58 per cent.
"Currently, 75 per cent of total cigarette users belong to the low tier. However, the supplementary duty (SD) in this tier stands at only 58 per cent. Raising the SD to 63 per cent would certainly reduce the prevalence of cigarette use and raise revenue inflow for the government. The additional revenue would also play a major role in tackling the ongoing financial crisis,” he said.
An analysis of the average retail prices of essential commodities in seven metropolitan cities of the country (Dhaka, Chattogram, Rajshahi, Khulna, Sylhet, Barishal, and Rangpur) between July 4 in 2021 and July 4 in 2023, as reported by the Department of Agricultural Marketing (DAM), shows the price of loose sugar has seen an 89 per cent hike in this period while the hike was 87 per cent for potatoes, 75 per cent for loose flour, 47 per cent for pangas, 43 per cent for eggs, 34 per cent for soybean oil, 30 per cent for powdered milk, and 27 per cent for broiler chicken.
However, during this period, the hike in the prices of different tiers of cigarettes ranged between 6 and 15 per cent only.
The proposed tobacco pricing and taxation adjustments outlined at the press conference advocate for a significant upsurge in prices across various product tiers. Notably, the suggested retail price for low-tier cigarettes is Tk 60 for 10 sticks from the current Tk 45, complemented by a 63 per cent supplementary duty. Similar adjustments were recommended for medium, high, and premium tiers, with corresponding price increments and supplementary duties.
For non-filtered bidis, the retail price was proposed to be Tk 25 for 25 sticks. In the case of filtered bidis, the retail price for 20 sticks was proposed to be set at Tk 20. Both prices should be followed by a 45 per cent supplementary duty, the organisations said.
The implementation of these proposals is anticipated to yield a substantial additional revenue of Tk 10,000 crore, which holds the potential to alleviate the prevailing financial constraints. Moreover, in the long term, these measures are projected to avert the premature deaths of 1.1 million Bangladeshis, including nearly half a million youths, the speakers said.
Supporting the proposals, economist and convener of the National Anti-Tobacco Platform Dr Qazi Kholiquzzaman Ahmad said tobacco products becoming cheaper over time compared to the prices of essential commodities is an ominous sign for public health.
“Considering hundreds of thousands of tobacco-caused premature deaths, diseases, detrimental effects on environment and ecosystem, the upcoming national budget must effectively hike the prices of tobacco products to bring it beyond the purchasing power of the people,” he said.
The panel of speakers also included Md Abdus Salam, programme manager (Bangladesh) for Campaign for Tobacco-Free Kids (CTFK); Mortuza Haider Liton, convener of ATMA; and ABM Zubair, executive director of PROGGA.
In Bangladesh, 37.8 million adults use tobacco products (smoked and smokeless). Tobacco claims 1,61,000 lives every year in the country.
Besides, in 2017-18, the tobacco use toll on the national economy (due to medical expenses and loss of productivity) stood at Tk 30,560 crore while the revenue generated from the tobacco sector was Tk 22,810 crore.
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