Home ›› 14 Sep 2022 ›› Opinion
There is no denying the fact that tobacco control is of paramount importance for saving lives and human health. Governments across the globe took different initiatives to lessen the negative impacts of tobacco-induced diseases.
Mass campaigning and awareness building against tobacco consumption has long been a priority to regulators, along with enacting laws to discourage smoking habits. Their results are positive, as smokers are on the decline on the global stage as well as in Bangladesh perspective. According to World Bank data, the number of tobacco users in 2009 was 44 per cent of the total population in Bangladesh. Through the visionary amendment in 2013, the government has successfully brought this number down to 34 per cent in 2017. This shows that almost every year on average there has been a reduction of 1 per cent in the number of smokers.
Although ‘smoking kills’ slogan is getting louder, global smokers are still 1.3 billion, over 80 per cent of which live in low- and middle-income countries, according to a recent report by the World Health Organisation.
On June 16, a draft of the amended version of the Smoking and Tobacco Products Control Act 2005 (amended in 2013) was published on the website of the Ministry of Health and Family Welfare for public opinion. Since then, various speculations and rumours went rampant in the media and social platforms. The proposed draft includes several important and critical amendments, such as the adoption of specific licenses for the sale of tobacco and tobacco products, prohibition on the sale of tobacco and tobacco products via mobile shops/hawkers, prohibition of the displaying of tobacco products at the point of sale, ban on the retail sale of single sticks of cigarettes, redefined ‘smoking areas’ which include tea shops under the definition of public places, ban on Corporate Social Responsibility (CSR) programs by tobacco companies, a complete ban on the sale of tobacco and tobacco products within 100 meters of educational institutions, hospitals, clinics, sports venues and children’s parks, ban on the use of electronic nicotine delivery systems (e-cigarettes), and provisions for imprisonment and the Code of Criminal Procedure applied to it are also included.
If we take the proposed measures in consideration, it can be easily concluded that the proposed regulations on tobacco control have not taken the plights of millions of small traders engaged in the cigarette trade. The proposed act arbitrarily made traders obtaining licences from local government mandatory, and most importantly ignored the revenue earning imperatives of the government from the highest value-added tax (VAT) earning sector to cause plummeting cigarette sales due to the proposed harsher measures.
Now the question raises about the timing for amending the act, as the economy is still reeling from the devastating impacts of covid-19, and faced a fresh blow from the Ukraine war. Rocketing inflation amid the resource crisis and forex volatility are some of the headwinds the government has been enduring for faults not created by itself. Any enactment that poses threat to nearly Tk 28,000 crore per annum in VAT from the tobacco industry will be suicidal for the government in this challenging time. Any revenue loss will bring a double whammy for the exchequer now being buffeted by multiple economic wounds.
Business leaders and economists are of the view that in the name of health issues, the move of the Ministry of Health and Family Planning will deprive the government of thousands of crores of revenue.
Acknowledging the health hazards of smoking, they have opined that the timing and strategy of the health ministry are wrong, as the government can only ill afford to put already hard-pressed people out of their business, and forsaking huge revenue amid acute resource constraints in the post-covid period to bankroll development projects.
The National Board of Revenue in the last 2021-2022 fiscal year earned nearly Tk 28,000 crore from the cigarette in value-added tax (VAT), or above 10 per cent of the total revenue income of the country.
Talked, a senior NBR official has expressed his innocence about the move to amend the act.
Officials concerned at the Ministry of Health and Family Welfare said the move to amend the tobacco control act is aimed at lessening the consumption of tobacco products.
“Ban on selling loose cigarettes will reduce cigarette consumption, as all smokers cannot afford full packets,” a senior health official said.
Asked, the officials, however, said no study was conducted by the Ministry of Health and Family Affairs on whether banning loose cigarettes will yield less or even more consumption.
Many traders say their business will be impacted once the act is amended, while some believe a ban on a single-stick cigarette will rather boost sales, as a large portion of smokers will opt for full packets, and consume more than before as a regulatory consequence.
Md Helal Uddin, President, Bangladesh Shop Owners Association said they would take to the streets if the livelihoods of above three million shop owners and small traders are put in distress in the name of licensing, and banning cigarette sales.
“It is simply a mockery to small traders. Why should they need licenses from the local government for selling cigarettes,” Helal questioned.
He said licenses should be required only for manufacturers.
“I have already held talks with the officials of the local government ministry to scrap licensing requirements for traders under the proposed act,” Helal said further.
A reading of the proposed clause suggests that the draft may have been prepared without keeping these simple but important points in mind.
The justification behind redefining the existing smoking areas and designating smoking areas states that the implementation of this clause will help in reducing the rate of second-hand smoking. Simple analytical reasoning will make us realize that today we see fewer smokers than we did just 10 years ago. Due to increased awareness, people voluntarily refrain from smoking anywhere other than designated smoking areas in their workplaces or restaurants. Smoking in designated areas means non-smokers, women and children will be safe from second-hand smoking incidences. Under the current tobacco control law, smokers are required to smoke in designated areas, and penalties for the violation of this law are clearly stated. If the proposed amendment is implemented, it is likely to increase the tendency of smokers to smoke anywhere they fancy.
The existing Tobacco Control Act is up-to-date and practical considering the socio-economic conditions of Bangladesh. With the proper implementation of this law, many positive changes have been made possible, including the abolition of advertisements of tobacco and tobacco products, prohibition of the sale of tobacco or tobacco products to any buyer under the age of 18, smoking in designated places, etc. According to World Bank data, the number of tobacco users in 2009 was 44 per cent of the total population.
An amendment of a Section 10 in Act 11 of 2005 states that health warnings are to occupy 90% of the surface area on cigarette packaging. Doing so will lead to obscurity in the branding and packaging of cigarettes, which may increase the overall manufacturing of counterfeit cigarettes.
The probable implementation of these new amendments raises economic concerns while pointing out the fact that the implementation of these laws will create the opportunity and demand for black market trading of cigarettes while leading to the manufacture of counterfeit cigarettes. The bigger danger in this route is a big loss of revenue for the government without any foreseeable reduction in cigarette consumption and consumerism in the country. The result is a loss-loss situation that will leave the economy and consequently the population of Bangladesh on shaky grounds amidst a global economic crisis.
Only Pakistan in Asia banned the marketing of single sticks in 2018. Large economies like Indonesia and India have no banning regulations on loose cigarettes.
Experts believe excessive regulations on controlling cigarettes could backfire with the opening of windows for the illicit cigarette market.
According to tobacco-free kids, 11.60 per cent of the global cigarette market is illicit. At least $40.5 billion in current tax revenues is lost each year by governments to illicit trade.
The burden of the illicit cigarette trade falls mainly on low-income and middle-income countries. 12.10 per cent of the cigarette market in low-income and middle-income countries is illicit, compared to 9.80 per cent in high-income countries. Annual tax revenue lost to governments in low-income and middle-income countries due to illicit cigarette trade greatly exceeds the tax revenue lost in high-income countries, adds the tobacco-free kids.
To counter the prevalence of tobacco, it is high time the government undertakes awareness campaigns and enforces the existing anti-tobacco acts prudently and efficiently. The local and foreign non-government organisations (NGOs) active in Bangladesh could be engaged towards the end. Mass campaigns through state machinery on the health hazards of smoking and tobacco products are set to yield positive outcomes for the nation. Students even can be made aware of the menace of smoking through their textbooks.
You need mass awareness more than enacting painstaking laws and regulations that are considered easier in the Bangladesh context, but difficult to get a positive outcome from them due to field-level corruption, and rule-breaking tendencies. Amid global economic slowdown and local meltdown, any steps demeaning government income and people’s livelihoods should be shunned altogether.
I urge the government to enforce the existing strong tobacco control act. And, wait for the right time for its further amendment. The nation is now in a post-covid emergency emanating from the Ukraine war, and west-imposed sanctions on Russia. Shun any hasty legislation at the cost of huge revenue, and loss of business amid an uncertain global economic outlook.
The writer is an economic analyst
