Tobacco products cheaper than daily essentials, price hike demanded

Research and advocacy organizations Progotir Jonyo Gyan (PROGYA) and Anti-Tobacco Media Alliance (ATMA) have called for an effective increase in the price of all tobacco products in the upcoming 2024-2025 fiscal year budget to protect public health.

The two organizations presented their budget proposal regarding tobacco tax and price for the upcoming financial year at a press conference held at Tofazzal Hossain Manik Mia meeting room of the National Press Club on Saturday (April 20).

At the press conference, convener of Jatiya Tamakbirodhi Mancha and economist Dr Kazi Khaliquzzaman Ahmed said, “Tobacco products are gradually becoming cheaper compared to daily essentials, which is a threat to public health. Taking into account the premature death of millions of people, illness, and damage to the environment, the prices of all types of tobacco products should be increased in the upcoming budget and taken beyond the purchasing power of the people.”

Research Director of Bangladesh Institute of International and Strategic Studies Dr Mahfuz Kabir said, “Currently, 75 percent of smokers are low-level cigarette users. While the supplementary duty rate at this level is only 58 percent, increasing it to at least 63 percent will reduce cigarette consumption and increase revenue. This increased revenue will contribute significantly to addressing the ongoing financial crisis.”
In the press conference, tax and price hikes on tobacco products were demanded. Demands were raised to increase the price from Tk 45 to Tk 60 per 10 cigarettes at the low end and to impose 63 per cent supplementary duty in the upcoming budget.

Increasing the retail price of every 10 cigarettes at the middle level from Tk 67 to Tk 80, at the high level from Tk 113 to Tk 130, and at the premium level from Tk 150 to Tk 170 were also demanded.
They demanded to retain supplementary duty at 65 per cent at these three levels.

Demand was raised to impose a supplementary duty of 45 per cent by fixing the retail price of 25 pieces of bidi without filter at Tk 25 and retail price of 20 pieces of bidi with filter at Tk 20. Fixing the retail price of jorda at Tk 55 per 10 grams and the retail price of gul at Tk 30 per 10 grams and imposing a supplementary duty of 60 per cent were demanded. Besides, 15 percent value added tax (VAT) and 1 percent health promotion surcharge on the retail price of all tobacco products have to be retained.

It was informed in the press conference that if the anti-tobacco tax and price proposals are implemented, additional revenue of Tk 10,000 crore will be earned. At the same time, it will be possible to prevent the premature death of more than 11 lakh people, including about five lakh young people, in the long run.
The press conference was addressed, among others, by Program Manager (Bangladesh) of Campaign for Tobacco Free Kids Md Abdus Salam, AtMA convener Maturza Haider Liton and PRAGYA executive director ABM Zubair.

Mentionable, more than 1,61,000 people die every year in the country due to diseases related to tobacco use. In the financial year 2017-18, the economic loss of tobacco use was Tk 30,560 crore, which is much higher than the revenue earned from the tobacco sector (Tk 22,810 crore) during the same period.