Effective cigarette taxation needed to reduce smoking: Experts

Experts have recommended implementing effective cigarette taxation to reduce smoking in Bangladesh, stating that increasing cigarette prices significantly and imposing an effective tax rate on it is the most proven way to curb its use. 

The view came at a seminar titled "Effective Taxation on Cigarettes" organised by private research organisation Unnayan Shamannay at the Bishwa Sahitya Kendra today. The event was moderated by Shahin Ul Alam, head of programmes at the organisation.

Speakers said due to the lack of effective taxation on cigarettes, more than 15% of citizens aged 15 and above continue to smoke. 

However, the recent political changes in the country have brought about an opportunity to move away from traditional taxation methods and adopt more impactful approaches, they added.

Dr Mustafizur Rahman, honorary fellow at the Centre for Policy Dialogue (CPD), said the National Board of Revenue (NBR) should take initiatives to reduce reliance on tobacco companies for revenue generation. 

He also suggested that the government impose a specific supplementary duty on the retail price of cigarettes instead of a percentage-based tax, which would increase government revenue and limit opportunities for cigarette companies to evade tax.

While presenting the keynote paper, Abdullah Nadvi, research director at Unnayan Shamannay, highlighted that the lack of effective cigarette taxation is not only increasing harm to public health, but the government is also losing an estimated Tk6,600 crore annually in revenue.

Dr Shafiun Nahin Shimul, a professor at Dhaka University's Institute of Health Economics, said, "Cigarettes in Bangladesh are cheaper compared to most countries. Raising cigarette prices and imposing an effective tax rate is the most cost-effective method to reduce the consumption of these harmful products."

"It has become crucial to significantly increase cigarette prices in the national budget to prevent smoking initiation among adolescents and young adults," emphasised Nazmul Islam, associate professor of the Economics Department at Bangladesh University of Engineering and Technology (BUET.

Dr Sujana Karim, associate professor at Dhaka University's Institute of Health Economics, pointed out that despite ongoing advocacy by anti-tobacco organisations for effective cigarette taxation, progress has been stalled due to the influence of powerful entities.

The seminar was chaired by Dr SM Zulfiqar Ali, research director at the Bangladesh Institute of Development Studies (BIDS). Representatives from various anti-tobacco organisations, university students, and researchers participated in the open discussion that followed.