Research and Advocacy Organization PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA) have demanded the government to impose specific taxes on cigarettes and other tobacco products in the upcoming budget for 2021-22.
In a press conference held virtually on Tuesday, the two organizations unveiled their proposals regarding tobacco taxes and prices in the 2021-22 FY national budget.
Implementation of proposals would prevent premature deaths of nearly 390,000 current adults and 400,000 current youth, according to release.
In addition, supplementary duty, health development surcharge and VAT on cigarettes would also earn the government Tk 34 billion in additional revenues, the organizations claim.
The Project Head of Tobacco Control at PROGGA Md Hasan Shahriar presented the budget proposals are– Introducing a tiered specific excise (supplementary duty -SD) with uniform tax burden (SD share of 65% of final retail price) across all cigarette brands.
In the low-tier, the retail price should be set at 50 for 10 sticks, followed by Tk 32.50 as specific supplementary duty (SD); In the medium-tier set the retail price at Tk 70 for 10 sticks and Tk 45.50 should be imposed as SD; In the high-tier, the retail price should be set at 110for 10 sticks, followed by Tk 71.50 as SD; and in the premium tier, set the retail price at Tk 140 for 10 sticks and BDT 91 should be imposed as SD. Reducing price tiers from four to two in the medium-term (2021-22 to 2025-26) by reducing the gaps in final prices and tax rates between cigarettes brands
For 25 non-filtered bidi sticks, the retail price should be Tk 25, followed by a specific supplementary duty of Tk 11.25. The price for 20 filtered sticks should be Tk 20, which will be followed by a specific supplementary duty of Tk 9. As a result of such measures, in both filtered and non-filtered bidis, the specific supplementary duty will be 45 percent of final retail prices.
For SLT products, the price per 10-gram jarda and gul should be Tk 45 and 25 respectively. A specific supplementary duty of Tk 27 should be imposed on per 10-gram jarda. For gul, the specific supplementary duty should be Tk 15. As a result of such measures, in both jarda and gul, the specific supplementary duty will be 60 percent of final retail prices.
They also propose to retain the existing 15% Value Added Tax (VAT) and 1% Heath Development Surcharge on all tobacco products.
According to the Global Adult Tobacco Survey (GATS), 2017, between 2009 and 2017, there has been a 1.5 million increase in the number of cigarette users. The numbers reveal that the existing tobacco tax structure has not been contributing to make Bangladesh a tobacco-free country by 2040, as envisioned by the Honorable Prime Minister.
With the ongoing second wave of Covid-19 pandemic, the health sector and overall economy of the country are going through precarious condition. If tobacco use goes unchecked during such a period of vulnerabilities, it would put the additional risk for public health, Shahriar added.
According to World Health Organization (WHO), smokers are more likely to become severely ill when infected with covid-19. This makes the existing tobacco users, around 40 million in number, extremely vulnerable to severe covid-19 infection.
