Anti-Tobacco Media Alliance (ATMA) has recommended for an effective hike in tobacco products' prices and taxes to help the government tackle the fiscal shortfall and simultaneously, safeguard public health.
The organization's latest push for such a hike came on Thursday in a pre-budget meeting for FY 2024-25 held at the conference room of the National Revenue Board (NBR), according to a press release.
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Abu Hena Md Rahmatul Muneem, Chairman of NBR presided over the meeting, it said.
In support of its demand, ATMA informed that budget proposals placed by anti-tobacco activists, if realized, can help the government raise Tk 9,400 crore in additional revenue, which will come in handy to deal with the ongoing economic crisis.
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The prices of tobacco products in Bangladesh are considerably low. Furthermore, compared to the prices of essential commodities, it is evident that these deadly products are getting even cheaper. Such growing affordability is particularly alluring for the youth and the poor which is undoubtedly an ominous sign for our public health.
“We will increase the prices of tobacco products in the upcoming budget for FY 2024-25. We are also considering the replacement of the current ad valorem tobacco tax structure with a specific tax system,” said the NBR chairman.
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Senior Journalist Sukanta Gupta Alok, Mortuza Haider Liton, Convenor, ATMA, Nadira Kiron and Mizan Chowdhury, co-convenors of ATMA, NBR officials participated in the event, among others.
During the pre-budget meeting, ATMA urged policymakers to hike the retail price of low-tier cigarettes to 60 for 10 sticks, followed by a 63 percent supplementary duty (SD). The prices of 10 sticks should be set at Tk 75, 125 and Tk 165 for medium, high and premium tiers respectively. The prices should be followed by a 65 percent SD, the release also said.
Regarding smokeless tobacco, the retail price for 10 grammess of jarda and gul should be Tk 55 and Tk 30, followed by 60 percent SD. The budget proposals also suggested retaining 15 percent VAT on the retail prices of tobacco products and continuing the existing 1 percent health development surcharge (HDS).
It should be noted that 37.8 million adults in Bangladesh use tobacco products (smoked and smokeless). Tobacco claims 161,000 lives every year in Bangladesh. In 2017-18, the toll of tobacco use in the national economy (due to medical expenses and loss of productivity) stood at Tk 30,560 crore.