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FY 25 budget reaction

'Low cigarette tax' irks anti-tobacco activists

FE REPORT | June 12, 2024 00:00:00


Anti-tobacco campaigners expressed dissatisfaction over "low tax" imposition on cigarettes in the proposed budget for fiscal year (FY) 2024-25.

They claimed that the government missed the opportunity to reduce the smokers' rate in the country to the desired level and increase revenue.

Speakers said these at a post-budget press conference, organised by Unnayan Shamannay at the National Press Club.

Prof Taiabur Rahman of Department of Development Studies, Dhaka University (DU), chaired the event. Professor Tania Haque of Department of Women and Gender Studies, DU, and Nazmul Islam, Associate Professor of Economics, BUET, were present, among others.

"Neo-colonialism is there in the form of multinational companies (MNCs). These companies are ruining the world by promoting such toxic farming," said Taiabur Rahman.

Tobacco farming is also dangerous for the environment. It is blamed for destroying as much as 30 per cent of the forest area, including in hills in the country. The MNCs are leading the process.

The government should take an exit plan to execute its roadmap to make the country tobacco free by 2040, he opined.

Although an anti tobacco act is in effect, there is no instance of fining people for smoking in open area or public place.

If the proposal forwarded by the organisation is considered, the government can generate additional revenue of Tk 10 billion from the sector, he added.

Abdullah Nadvi, Research Director at Unnayan Shamannay, presented the keynote paper. He said only a meagre portion of their proposals has been reflected in the proposed budget.

Tania Haque said the prices of affordable cigarettes should be increased further in the budget to protect people, especially the youth.

Nazmul Islam said in the proposed budget, the retail prices of each ten-pack cigarette of different grades have been increased from Tk 3.0 to Tk 10. But, considering inflation, the prices of cigarettes have not increased that much.

In order to create a tobacco-free Bangladesh by 2040, it is imperative to increase the retail cigarette prices significantly in every budget, they also said.

Currently, the supplementary duty on lower-grade cigarettes is 58 per cent, and the supplementary duty on other higher-grade cigarettes is 65 per cent.

Since 70 per cent of the cigarettes sold in the market are low-end cigarettes, the duty rate of this level of cigarettes should be as close as possible to the duty rate of the high-end cigarettes, the keynote presentation mentioned.

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