Tobacco cheaper than essential goods, campaigners demand price hike in budget
Between 4 July 2021, and 4 July 2023, the price increase for various tiers of cigarettes ranged from 6% to 15% only
In an effort to safeguard public health, two research and advocacy organisations have called for a hike in the prices of tobacco products in the upcoming national budget.
PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA) presented their tobacco taxation and pricing related proposals for the upcoming financial year on Saturday (20 April) during a press conference at the Tofazzal Hossain Manik Miah Auditorium of the National Press Club in Dhaka.
Dr Qazi Kholiquzzaman Ahmad, economist and convener of the National Anti-Tobacco Platform, said, "Tobacco products are becoming cheaper over time when compared to the prices of essential commodities which is an ominous sign for public health."
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"Considering hundreds of thousands of premature deaths, diseases, detrimental effects on environment and ecosystem- all caused by tobacco, the upcoming national budget must effectively hike the prices of tobacco products to bring it beyond the purchasing power of the people," he said.
Dr Mahfuz Kabir, research director of Bangladesh Institute of International and Strategic Studies (BIISS), said, "Currently 75% of total cigarette users belong to the low tier. However, the supplementary duty on this tier stands at only 58%."
"Raising the supplementary duty to 63% would certainly reduce the prevalence of cigarette use and raise revenue inflow for the government. The additional revenue would also play a major role in tackling the ongoing financial crisis."
An analysis of the average retail prices of essential commodities in seven metropolitan cities of the country including Dhaka, Chattogram, Rajshahi, Khulna, Sylhet, Barisal, and Rangpur between 4 July 2021, and 4 July 2023, as reported by the Department of Agricultural Marketing (DAM), shows that the price of loose sugar has seen an 89% hike in this period.
The hike is 87% for potatoes, 75% for loose flour, 47% for pangash fish, 43% for eggs, 34% for soybean oil, 30% for powdered milk, and 27% for broiler chicken. However, during this same timeframe, the hike in the prices of different tiers of cigarettes ranged between 6% and 15% only, as per the report.
According to a press release by PROGGA, the tobacco prices and taxation proposals presented during the workshop are as follows: the retail price of low-tier cigarettes should be increased to Tk60 for 10 sticks from the existing Tk45, followed by a 63% supplementary duty.
The prices of 10 sticks should be set at Tk80, Tk130, and Tk170 for medium, high, and premium tiers respectively, followed by the existing 65% supplementary duty on these three tiers.
For non-filtered bidis, the retail price should be Tk25 for 25 sticks. In the case of filtered bidis, the retail price for 20 sticks should be set at Tk20. Both prices should be followed by a 45% supplementary duty.
Regarding smokeless tobacco, the retail price for 10 grams of jarda and gul should be Tk55 and Tk30, respectively, followed by a 60% supplementary duty. The budget proposals also suggest continuing the existing 15% VAT and 1% health development surcharge (HDS) on the retail prices of tobacco products, the press release mentioned.
It was also mentioned that the implementation of the above-mentioned budget proposals would generate Tk10,000 crore as additional revenue which could greatly contribute to tackling the existing financial crisis. Additionally, the proposals, in the long run, will also help prevent the premature deaths of 1.1 million Bangladeshis, including nearly half a million youths.
