Members of ‘Bangladesh Parliamentary Forum for Health and Wellbeing’ in a meeting with Abu Hena Md. Rahmatul Munim, Chairman of NBR (National Board of Revenue) at the NBR office on Monday suggested the option of earning an extra Taka 3,400 crore in revenue through imposing taxes and VAT on cigarette and tobacco products in the ensuing National Budget of 2021-’22 fiscal year.
The meeting also suggested that imposing such tax will help to build ‘Tobacco Free Bangladesh’ within 2040 as envisions by the Prime Minister Sheikh Hasina.
Professor Dr. Mohammad Habibe Millat MP handed over a letter signed by 52 LawMakers demanding to impose specific taxes on all tobacco products to the NBR Chairman on Monday (12 April).
The meeting was attended, among others, by Dr. Nizam Uddin Ahmed and Rafiqul Islam, Executive Director and the Director respectively of Shastho Suraskha Foundation. Moreover, the copy of the letter was also sent to Wahida Rahman Chowdhury, Commissioner of the VAT and Masud Sadik, Member, VAT policy of NBR.
Dr. Habibe Millat MP in the meeting said, ‘Cigarette and other tobacco products are highly injurious for the health of the youngsters of the country. It is essential to make Bangladesh tobacco free to save the youngsters of the country from being drug-addicted. To achieve the aim, it is possible to build a tobacco free Bangladesh through Revising the Tobacco Rule and to impose taxes on tobacco products at a high rate.’
NBR Chairman Abu Hena Md. Rahmatul Munim also agreed with the proposal for increasing the price of cigarettes and the tobacco products and expressed his positive opinion with the proposal of the Law Makers.
He said, ‘Youngsters of the country should be enshrined with moral values. They should come forward to eliminate tobacco menace from the country and then we will succeed to realise the announcement of the Prime Minister’.
The meeting quoting the Law Makers further informed, use of tobacco claims some 161,000 people every year in Bangladesh (GATS, 2020). The amount of economic loss due to use of tobacco (treatment cost, loss of productivity) in the 2017-’18 fiscal was Taka 30,560 crore whereas the revenue earned from the tobacco sector was only Taka 22,810 crore during the same time (2017-’18).
They further mentioned, an increased tax on tobacco will discourage some 1.1 million adults to abandon smoking and more than eight lakh youngsters will discourage to start smoking afresh. As a result, death of some 390, 000 smokers and 400,000 youngsters will be averted. On the other hand, the use of tobacco should be decreased by 1.5 percent annually to make a tobacco free Bangladesh as envisioned by the Prime Minister Sheikh Hasina.
The proposals placed by the Law Makers to increase taxes on cigarette and tobacco products as follow, imposition of uniform taxes and excise duty (65 percent on retailed price) on all brands of cigarettes.
Retail price of a 10-stick cigarette in the lower tier should be Tk 50 and the medium tier be Tk 70 while it should be Tk 110 in higher and Tk 140 in premium tier after imposing 65 percent supplementary duty, 15 percent
VAT and one percent health development surcharge. It will help the government earn Taka 34,000 crore taka additional revenue in 2021-22 fiscal year. This will help reduce cigarette consumption to 14.1 percent from prevailing 15.1 percent. It will abstain eight lakh young people from tobacco consumption.
Imposition of uniform taxes (45 percent on retailed price) on the filter and non-filter Bidis and increase in the price of non-smoking tobacco products like Jarada and Gul (60 percent on the retailed price).
The implementation of these proposals in the 2021-22 budget will reduce tobacco consumption and increase the revenue income. In addition, a portion of the additional revenue earned from tobacco could be used to encourage tobacco growers to cultivate other crops and to provide them in alternative employment. It will also be possible to increase the price of high-priced cigarettes as well as low-priced cigarettes and control the use of smokeless tobacco products. Above all, a large portion of the young and poor population of the country will be discouraged from tobacco use.
The 52 Law Makers who have signed the recommendation letter to increase the price of cigarettes and tobacco products are includes State Minister for Information Dr. Murad Hasan, State Minister for Public Administration Farhad Hossain, State Minister for Post, Telecommunication and Information Affairs Junayed Ahmed Palak, Whip of the JS Mahbub Ara Begum Guinea, former Minister Khandker Mosharraf Hossain, former Minister Nurul Islam Nahid, former Deputy Speaker of JS Ali Ashraf, Waresat Hossain Belal ( Bir Protik) among others.