Economists, citizens urge finance adviser for effective cigarette taxation

Economists and eminent citizens have urged the finance advisor to impose an effective cigarette taxation in the FY26.

According to the World Health Organization's “Global Action Plan for the Prevention and Control of NCDs,” Bangladesh must reduce tobacco use by 30 per cent between 2010 and 2025.

The country is lagging far behind (in 2010, tobacco usage rate was 43.3 per cent, which is 35.3 per cent now).

The direct and indirect health impacts of consuming tobacco are immeasurable, said the organisation.

According to the World Health Organization, about 161,000 Bangladesh citizens die prematurely due to tobacco-related illnesses every year.

Also, due to cultivation and the production of tobacco products, irreparable damage is being done to the country's agricultural land and environment, says a media release.

While retail prices of cigarettes have been increased over the recent years, these measures have proven insufficient in achieving a significant reduction in cigarette usage.

For example, between 2019-20 and 2023-24, per capita income at current prices has increased by 55 per cent, and CPI has increased by 32 per cent. But cigarette prices have been increased by only 6 to 22 per cent.

As the increase in the prices of cigarettes is less than inflation, the real increase in the cigarette prices is negative, it reads.

Consequently, cigarettes have become increasingly affordable. Furthermore, due to ineffective taxation of cigarettes, the government loses an average of Tk 66 billion in revenues annually.

Given this backdrop, economists and eminent citizens are emphasising significantly increasing prices of cigarettes and imposing effective taxes on those increased prices 2025-26 fiscal year.

They believe such measures will protect public health as well as ensure additional revenue for the government.

A total of 17 distinguished citizens have submitted written requests to the finance advisor where they have urged him to consider this proposition when preparing the national budget for the next fiscal year.

The citizens are: Dr. KAS Murshid (Team Leader of the government's task force to reframe the development strategy for the economy), Distinguished Fellow of CPD- Dr. Mustafizur Rahman, Vice-Chancellor of UCSI University- Dr. A. K. Enamul Haque, Former Chief Scientific Officer of IEDCR- Dr. Mushtuq Husain, Sociologist- Dr. Mahbuba Nasreen, Research Director of BIDS- Dr. SM Zulfiqar Ali, Professor of Development Studies, Dhaka University- Dr. Taiabur Rahman, Professor of the same department- Dr. M. Abu Eusuf, Visiting Fellow of BIGD- Khandaker Sakhawat Ali, Professor Dr. Tania Haque (Women and Gender studies of the University of Dhaka), Associate Professor of BUET- Dr. Nazmul Islam, Associate Professor of Health Economics of the University of Dhaka- Dr. Suzana Karim, Associate Professor of BSMMU- Dr. Md Khalequzzaman, Joint Editor of BAPA- Aminur Rasul, Executive Director of ALRD- Shamsul Huda, Member Secretary of National Char Alliance- Zahid Rahman, and Associate Professor Nazneen Sultana (Department of Development Studies of the University of Dhaka).