The proposed national budget for FY24, if adopted, will once again render tobacco products cheaper than essential commodities, experts say.
Addressing a post-budget press conference on tobacco price and tax measures in Dhaka on Monday, economists and anti-tobacco leaders added that the measures will raise tobacco-related illness and death.
This would also deprive the government of the opportunity to earn additional revenue and only benefit tobacco companies.
Research and advocacy organisation PROGGA (Knowledge for Progress) and Anti-tobacco Media Alliance (ATMA) jointly organised the event held at the Tofazzal Hossain Manik Mia Auditorium of the National Press Club, read a press release.
Speakers have raised the demand for introducing specific supplementary duty (SD) to effectively raise the prices of tobacco products in the final budget.
At the press conference, PROGGA and ATMA informed that the increase in prices of 10 sticks of cigarettes ranges from 1.8 per cent to 12.5 per cent. However, according to the government reports, the year-on-year increase in the prices of loose wheat flour (atta), broiler chicken, sugar, eggs, powder milk, and red lentil ranges from 14.5 per cent to 71.7 per cent.
As a result, tobacco products will become much cheaper compared to other essential commodities, which will encourage people to get hooked on smoking, and thus threatening public health.
The proposed budget has not raised the prices of bidi. This is the fourth consecutive time the budget has kept the retail price of bidi unchanged and the seventh consecutive time not to raise the SD imposed on bidi.
The prices of per gram jarda and gul have been raised by 50 paisa and 30 paisa respectively and the SDs have been kept unchanged.
It was also informed during the press conference that the proposed budget raised retail prices of tobacco products without increasing the SD imposed on those products. This will only increase the profits of tobacco companies but deprive the government of the opportunity to earn additional revenue, read the release.
As per the proposals of anti-tobacco organisations, only by introducing 65 per cent of SD in the low-tier cigarettes, the government can earn at least Tk 17 billion as additional revenue. As the proposed budget has set the SD on the low-tier of cigarettes at only 58 per cent, the companies will pocket at least Tk 4.86 billion as additional profit.
In his speech as the chief guest of the event, eminent economist and Convener of the National Anti-Tobacco Platform, Dr Qazi Kholiquzzaman Ahmad said, “The budget does not reflect any of the proposals that we have put forth regarding a reform of the tobacco tax structure.
“We strongly demand that the government incorporate such proposals in the final budget to safeguard public health,” he said.
Dr Mahfuz Kabir, research director of the Bangladesh Institute of International and Strategic Studies (BIISS), said, “There is an ample opportunity to raise additional revenue by hiking the SD on the low-tier of cigarettes to 65 per cent.
“The proposed budget has replaced the ad valorem system with specific taxes on petroleum products, which should also be followed in case of tobacco products to benefit both the economy and public health,” he added.
The following proposals were raised to be included in the finalised budget —
Cigarette
The retail price of the low-tier cigarettes should be set at Tk 55 for 10 sticks, followed by Tk 35.75 as specific supplementary duty (65 per cent of the final retail price).
In the medium-tier of cigarettes, the retail price should be set at Tk 70 for 10 sticks, followed by Tk 45.50 as a specific supplementary duty, and in the high-tier, the retail price and supplementary duty for 10 sticks should be Tk 120 and Tk 78 respectively.
In case of premium-tier of cigarettes, experts spoke in favour of imposing a specific supplementary duty of Tk 97.50 for 10 sticks while retaining the retail price at Tk 150 as per the proposed budget.
Bidi
For non-filtered bidis, the retail price should be Tk 25 for 25 sticks, followed by Tk 11.25 as a specific supplementary duty. In the case of filtered bidis, the retail price for 25 sticks should be set at Tk 20, to be followed by Tk 9 as a specific supplementary duty.
Jarda and gul
For 10 grams of jarda, speakers suggested imposing a specific supplementary duty of Tk 27 while retaining the retail price at Tk 45 as per the proposed budget. For 10 grams of gul, the retail price should be Tk 25 and supplemented by Tk 15 as a specific supplementary duty.
It was informed that the implementation of the above-mentioned proposals will raise Tk 9,600 crore in additional revenues and prevent the premature deaths of 4.88 lakh adults and 4.92 lakh youths, the release added.
The discussants in the event included Syed Yusuf Sadat, research fellow of Centre for Policy Dialogue (CPD), Mortuza Haider Liton, convener of ATMA, Md Abdus Salam, programme manager of Campaign for Tobacco-free Kids (CTFK) Bangladesh, and ABM Zubair, executive director of PROGGA, and leaders of different anti-tobacco organisations.
Nadira Kiron, chief reporter of ATN News and co-convener of ATMA, hosted the event whereas Md Hasan Shahriar, head of tobacco control, PROGGA, presented an analysis of the proposed budget and raised demands for the final budget.
