Anti-tobacco group PROGGA (Knowledge for Progress) wants the government to implement its seven-point recommendation in a bid to reduce use of tobacco in the country in the upcoming 2019-20 fiscal.
People familiar with the matter say that implementation of these seven-points will not only help Bangladesh reach the Sustainable Development Goals (SDG) faster, it will also be possible to realise the prime minister’s goal of making the country tobacco-free by 2041.
The seven-point recommendations are:
- Regular increase in supplementary tax keeping inflation and income generation in mind to make tobacco products less easily obtainable.
- Limit the tobacco users’ scope to change brands by reducing the difference in taxes and prices between the various brands in markets.
- Bring all the smokeless tobacco products under the government’s taxing process.
- Initiatives to gradually market tobacco products in uniform packaging.
- Draft and implement an effective five-year tobacco tax guideline.
- Ban manufacture, import and marketing of all e-cigarettes and heated (IQOS) tobacco products.
- Increase the health development surcharge by two percent.
PROGGA has already recommended the National Board of Revenue to reduce the number of price slabs from the existing four to two.
Moreover, they have also proposed that the minimum price slab of Tk 35 and 48 and maximum price slab of Tk 75 and 105 be merged and a new minimum and maximum slab is determined.
The research institute suggested imposing 60 percent supplementary duty by setting the retail price of 10-pack cigarettes of minimum price slab at Tk 50. In the same way impose 65 percent on 10-pack cigarettes of minimum price slab by setting the retail price at Tk 105. On an average Tk 5 extra will be imposed on each packet of 10.
The anti-tobacco body proposed to eliminate the price distinction between filtered and non-filtered bidis. For non-filter bidis, it advocates a retail price of Tk 35 per pack of 25 sticks and a 45 percent supplementary duty in addition to a specific tax of Tk 6. For filter bidis, it proposes to set a retail price of Tk 28 per pack of 20 sticks, impose 45 percent supplementary duty and add a specific tax of Tk 4.8.
PROGGA says that if these proposals are implemented almost 3.2 million adult smokers will be encouraged to quit. Cigarette consumption will go down to 12.5 percent from 14 percent and bidi consumption will go down from 5 percent to 3.4 percent.
In the long term it will save 1 million smokers from early death and the revenue will go up to Tk 119.8 billion from Tk 66.8 billion.
Palli Karma Sahayak Foundation (PKSF) Chairman and economist Dr Kazi Khalikuzzaman Ahmed says, “We have been demanding to reform the tax structure of tobacco products for quite a while now. The policymakers including NBR agree with us but we never see results.”
He added that in the upcoming budget the duty on tobacco products must be increased to save people from harm.
Meanwhile, Bangladesh Agricultural Development Corporation (BIDC) researcher Dr Nazaneen Ahmed said that the prices will discourage those who want to start smoking.
According to her steps should be taken to change the psychology of smokers and not including social safety net programs will discourage the underprivileged community from using tobacco.
NBR Chairman Mosharraf Hossain Bhuiyan said that he will meet with the stakeholders regarding the matter before the upcoming budget.