Big push needed for raising cigarette prices in budget: Atiur Rahman

For the first time in recent years, prices of all-tier cigarettes and supplementary duty on all those cigarettes have been raised simultaneously in the budget for FY2024-25. While this is commendable, it is also important to give a ‘big push’ for raising cigarette prices in budget, instead of raising those prices slightly every year.

Former Governor of Bangladesh Bank and Emeritus Professor of the University of Dhaka Dr Atiur Rahman said this on Thursday while chairing a post-budget policy dialogue on effective cigarette taxation organized by Unnayan Shamannay in the capital.

At the event, MP Rashed Khan Menon pointed out that if cigarette prices could be increased in alignment with rate of inflation and if effective taxes could be imposed on those prices, then on the one hand, prevalence of cigarette smoking would decrease desirably, and on the other hand, government could gain more revenue from cigarette sales.

CTFK’s Lead Policy Advisor Mostafizur Rahman said while the cigarette taxation proposals in the new budget are positive, they have not completely reflected the recommendations made by the anti-tobacco civil society platforms.

Considering the wellbeing of the future generations, prices of affordable cigarettes need to be significantly increased, said Aparajita Haque, MP (Women Seat 20).

MP from Gaibandha-1 Abdullah Nahid Nigar said the policymakers are becoming more sensitized towards effective cigarette taxation due to pressure from the anti-tobacco civil society platforms.

To ensure that the suggestions from anti-tobacco civil society platforms are fully reflected in the National Budget, the Parliamentarians and the civil society activists must work together in a coordinated manner, said Farida Yasmin, MP (Women Seat, 35).

All three of these MPs were present at the dialogue session as esteemed discussants.

Akhtraruzzaman, the MP from Gazipur-5, said that ‘tobacco free Bangladesh’ by 2040 will not be possible without ensuring effective cigarette taxes.

In the closing remarks, Dr Atiur Rahman said because of not reflecting the proposals from the anti-tobacco activists and researchers in the cigarette taxation proposals of the budget, the government is likely to miss earning an additional Tk 6,000 crore in taxes from cigarette sales.

He urged the policymakers to take necessary steps to ensure that cigarette prices are raised significantly, and effective taxes are imposed on those raised prices, in the next budget.