Tobacco tax proposals in budget frustrating: MPs 

Lawmakers have perceived the tobacco tax proposals in the budget for FY 2022-23 to be very frustrating. 

The effective tobacco taxation proposals pushed by different anti-tobacco organizations, researchers, and activists have not been reflected at all in this budget for the coming fiscal year, they said at a post-budget discussion session organised Tuesday (21 June) by Unnayan Shamannay. 

Parliamentarians present at the event were Umme Fatema Nazma (Women Seat 12); Umme Kulsum Smriti (Gaibandha 3); Doctor Samil Uddin Ahmed Shimul, (Chapai Nawabganj 1); Md Aftab Uddin Sarker (Nilphamari-1); Md Harunur Rashid (Chapai Nawabganj-3); Md. Shifuzzaman Shikhor (Magura-2); Shirin Akhter (Feni 1) and Fazle Hossain Badshah (Rajshahi-2).

Former Governor of Bangladesh Bank and Unnayan Shamannay Chairperson Professor Dr Atiur Rahman said effective tobacco taxation proposals pushed by different organisations and individuals advocate for significantly increasing tobacco product prices in the coming fiscal year instead of increasing these prices negligibly every year. 

"This would, he added, significantly reduce the use of tobacco among the people, especially among the households with lower incomes<" he added. 

A background note was shared by Unnayan Shamanay. The paper shows that if the proposed (for FY2022-2023) tax rates are allowed to continue then- instead of lowering the sales of cigarettes there will be a stark increase in cigarette sales in the coming fiscal year (a 1.5% increase). Moreover, as cigarettes are already being sold at prices higher than the ones proposed in the budget, the cigarette companies will have more scope to evade taxes.  

Shirin Akhter MP pointed out that prior to the ongoing budget session of the Parliament at least 100 MPs had sent letters to the Finance Minister endorsing the effective tobacco taxation proposals.

 These requests and recommendations not being reflected in the Budget are really shameful, said Fazle Hossain Badshah. 

He noted that all stakeholders including the MPs will be working together for effective tobacco taxation.