Anti tobacco campaigners unhappy over low tax imposition on cigarette

Anti-tobacco campaigners have expressed their dissatisfaction over the “low tax” imposition on cigarettes in the proposed budget for the 2024-25 fiscal year.

They claimed that the government has missed the opportunity to reduce the smoking rate in the country to the desired level and increase revenue.

Speakers said this at a post-budget press conference organised by Unnayan Shamannay held at the National Press Club.

Prof Taiabur Rahman, teacher of Development Studies, University of Dhaka, chaired the event while Dhaka University Women and Gender Studies Department Professor Tania Haque, and Nazmul Islam, Associate Professor of Economics, BUET were present.

“Neocolonialism is there in the form of multinational companies. The multinational companies are ruining the world by promoting such toxic farming,” said Taiabur Rahman.

Tobacco farming is also dangerous for the environment. Tobacco farming is blamed for destroying as much as 30 per cent of the forest area, including hills in the country. And, multinational companies are leading the loss, he added.

The government should take an exit plan to execute its ambition to make the country tobacco-free by 2040, he demanded.

Despite an anti-tobacco act in effect, there is no instance of fining people for smoking in an open area or a public place.

If the proposal forward by the organisation is considered, the government can generate additional revenue of Tk 10 billion from the sector.

Abdullah Nadvi, Research Director at Unnayan Shamannay, presented the keynote paper. He said little has been reflected in the proposed budget out of their proposal.

Tania Haque said that the price of affordable cigarettes should be increased more in the budget to protect the people, especially the youth.

Nazmul Islam said that as much as it seems that the price of cigarettes has been increased in the proposed budget, it has not actually happened.

In order to create a 'tobacco-free Bangladesh' by 2040, it is imperative to increase the retail price of cigarettes significantly in every year's budget and implement it, they said.

In the proposed budget, the retail price of each ten-pack of cigarettes of different grades has been increased from Tk 3 to Tk 10. But considering inflation, the price has not increased that much.

Currently, the supplementary duty rate on low-grade cigarettes is 58 per cent, and the supplementary duty rate on other higher-grade cigarettes (ie, mid-, high-, and premium-grade cigarettes) is 65 per cent.

Since 70 per cent of the cigarettes sold in the market are low-end cigarettes, the duty rate of this level of cigarettes should be as close as possible to the duty rate of high-end cigarettes, according to the keynote presentation.

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