BSS, Dhaka :
With a well-managed system, high taxation rate leads to less tobacco consumption as this exercise is being considered as an effective tool to discourage the people to have more tobacco and tobacco products because of high prices.
The most effective way to reduce tobacco use is to raise its price through tax increase on all kinds of tobacco and tobacco products, which will decrease likelihood of addiction among the people, anti-tobacco activists told a meeting on “Tobacco taxation: thoughts of media” in a city hotel Tuesday.
In his presentation, eminent economist Prof Dr Abul Barakat said it is evident in different researches that high prices of tobacco products through imposing taxes in a higher rate contribute significantly in reducing overall tobacco consumption.
“In Bangladesh, five percent cigarette consumption has reduced with an impact of 10 percent price hike while seven percent bidi consumption reduced due to 10 percent price rise,” he said adding high taxation on all tobacco products should be imposed immediately aiming to enhance its prices to build a society free from tobacco.
With a strong influence of tobacco companies on tax fixation and collection process, Bangladesh is being deprived of huge revenue collection from tobacco industry every year creating multi-dimension negative impacts on economy and health sector, he added.
Referring to various aspects of tobacco taxation systems, Prof Barakat placed a set of recommendations including imposing punitive export duty on tobacco leaf and tobacco products, ensuring institutional participation of tobacco control group in the taxation and related budget process, strengthening tobacco tax administration by using modern technology and providing necessary powers to the authorities.
At least 5 percent more corporate tax should be imposed on tobacco producing companies as compared to other corporate sectors, he said, adding transparency among the tax collection authority, the tobacco industry and other related groups has to be ensured to cut tobacco consumption.
Others speakers said tobacco consumption causes premature death of nearly one lakh people every year while Bangladesh counts annual social and economic loss worth about Taka 16,632 crore due to tobacco consumption.
Bangladesh is one of the leading tobacco consuming countries, they said around 43.3 percent adults in the country are tobacco consumers and 58 percent men and 29 percent women use tobacco products.
With a well-managed system, high taxation rate leads to less tobacco consumption as this exercise is being considered as an effective tool to discourage the people to have more tobacco and tobacco products because of high prices.
The most effective way to reduce tobacco use is to raise its price through tax increase on all kinds of tobacco and tobacco products, which will decrease likelihood of addiction among the people, anti-tobacco activists told a meeting on “Tobacco taxation: thoughts of media” in a city hotel Tuesday.
In his presentation, eminent economist Prof Dr Abul Barakat said it is evident in different researches that high prices of tobacco products through imposing taxes in a higher rate contribute significantly in reducing overall tobacco consumption.
“In Bangladesh, five percent cigarette consumption has reduced with an impact of 10 percent price hike while seven percent bidi consumption reduced due to 10 percent price rise,” he said adding high taxation on all tobacco products should be imposed immediately aiming to enhance its prices to build a society free from tobacco.
With a strong influence of tobacco companies on tax fixation and collection process, Bangladesh is being deprived of huge revenue collection from tobacco industry every year creating multi-dimension negative impacts on economy and health sector, he added.
Referring to various aspects of tobacco taxation systems, Prof Barakat placed a set of recommendations including imposing punitive export duty on tobacco leaf and tobacco products, ensuring institutional participation of tobacco control group in the taxation and related budget process, strengthening tobacco tax administration by using modern technology and providing necessary powers to the authorities.
At least 5 percent more corporate tax should be imposed on tobacco producing companies as compared to other corporate sectors, he said, adding transparency among the tax collection authority, the tobacco industry and other related groups has to be ensured to cut tobacco consumption.
Others speakers said tobacco consumption causes premature death of nearly one lakh people every year while Bangladesh counts annual social and economic loss worth about Taka 16,632 crore due to tobacco consumption.
Bangladesh is one of the leading tobacco consuming countries, they said around 43.3 percent adults in the country are tobacco consumers and 58 percent men and 29 percent women use tobacco products.
