US-BASED research showed that Bangladesh is far below from the standard practice of cigarette tax structure over protection of health and economics. The University of Illinois at Chicago based Tobacconomics said Australia and New Zealand have specific policies on cigarette excise duty with regular increases that have significantly reduced the affordability of cigarettes. Bangladesh had significantly improved its score on cigarette taxation policy from 0.87 in 2014 to 2.38 in 2018 but improvements are needed at the tax structure and prices of cigarettes.
According to the World Health Organization (WHO), lungs hooked on tobacco are at greater risk of Covid-19. In Bangladesh, 37.8 million adults use tobacco and 41 million people fall victim to second-hand smoke in their own homes. This huge chunk of the population and victims of direct or indirect tobacco use, are currently at grave risk of severe coronavirus infection. Data shows, about 126, 000 people die every year in Bangladesh from tobacco use and the economic burden from tobacco use amounted to BDT 30,500 crores in 2017-18 which is 1.4 per cent of Bangladesh’s total GDP.
Tobacco taxes are the single most effective way to minimize the negative health and economic impacts of tobacco consumption. The best way to do this is through a uniform specific excise duty that comprises at least 75% of the retail price and is automatically updated to stay ahead of inflation and income growth. Increased taxes on tobacco products will reduce the consumption and generate much-needed revenue to bear Coronavirus related medical expenses and implementation of govt. stimulus packages. Reforming tobacco taxes provides a quick and easy way for Bangladesh to raise revenue for economic recovery.
The country must reduce the number of tiers for the purpose of cigarette taxation, introduce specific excise duty and significantly increase its existing excise duty on all tobacco products to save lives and raise much-needed revenue.
