“The budget leaves cigarette tax rates and price slabs untouched which will benefit tobacco companies,” Progga Executive Director ABM Zubair said in a statement on Friday.
He said that considering factors such as inflation and increase in per capita income, this hike in tobacco price will do “absolutely nothing” in encouraging low-income people to cut tobacco use and discouraging potential new users and the youth from lighting up.
The budget also keeps the existing 45 percent corporate tax on cigarette, bidi and smokeless tobacco companies. The 2.5 percent health development surcharge on the income of tobacco businesses is also in place.
He said Prime Minister Sheikh Hasina’s directive was to build a tobacco-free nation by 2040 by adopting a strong tobacco taxation policy. “Unfortunately, the proposed budget does not reflect the directive of the PM and frustrates the anti-tobacco activists,” Zubair said.