Increase taxes on cigarettes, not on daily necessities: Speakers

Cigarettes have become more affordable over the recent years as prices of daily necessities have increased at significantly higher rates compared to those of cigarettes. Given this backdrop, it is very important to significantly raise cigarette prices and impose effective taxes on those raised prices. This, on the one hand, will reduce smoking prevalence, and on the other hand, may generate additional revenue for the government. Discussants at a seminar titled ‘Effective Cigarette Taxation to Safeguard Public Health’ said this on Tuesday.

The seminar was organized by non-government think tank Unnayan Shamannay at the Bishwo Shahitto Kendro building at Dhaka where BIDS Research Director Dr. S. M. Zulfiqar Ali was present as the session chair. Adviser of the Ministry of Fisheries and Livestock- Farida Akhter was present as the chief guest at the occasion.

Spokesperson for the Anti-Discrimination Students Movement- Umama Fatema was also present as a panel discussant. The session was moderated by Unnayan Shamannay’s Senior Project Coordinator- Zahid Rahman.

While presenting the background note, Unnyayan Shamannay’s Research Director Abdullah Nadvi pointed out that over the course of the last three fiscal years, prices of daily necessities such as soyabean oil, broiler chicken, lentil, and sugar have increased by 26 to 84 percent. However, prices of cigarettes have risen by only 7.25 percent. Consequently, number of cigarettes sold annually has increased by 4.76 billion sticks. Dr. S. M. Zulfiqar Ali recommended reducing the number of tiers of cigarettes from four to three in the coming fiscal year and imposing a uniform 70 percent supplementary duty on all tiers of cigarettes. He argued that the minimum price of a single stick of cigarette should be set at BDT 10 (currently the cheapest cigarette can be sold at BDT 6 per stick). If the recommendations of anti-tobacco civil society platforms are reflected in the next national budget, cigarette smoking prevalence can be expected to come down from 15.1 percent to below 13 percent by mid-2026. Additionally, the government may be able to secure around BDT 750 billion in revenue from cigarettes.

Farida Akther argued that when discussing about cigarette taxation, instead of securing revenue, safeguarding public health and protecting the younger generations from the harms of cigarettes should be the topmost priority. She further added that the government did not reflect the recommendations about effective cigarette taxation at the beginning of the ongoing fiscal year. Yet, the government’s move to raise cigarette prices and taxes in the middle of the fiscal year should be welcomed. However, it must also be noted that the policymakers could have ensured even better results if they reflected the civil society proposals at the beginning of the year. To effectively refrain university students from smoking cigarettes, existing tobacco control law must be strengthened along with ensuring effective cigarette taxation, said Umama Fatema.