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Tk 3,340cr more revenue if specific tax imposed on cigarette


Published : 12 Jun 2021 10:02 PM

Dr Rumana Huque, a professor of Department of Economics of Dhaka University, has said that the government will earn Tk 3,340 crore more revenue if the specific taxation system is imposed as per the proposal of anti-tobacco organisations. 

She made the opinion while delivering her keynote address at a virtual dialogue on ‘Price and Tax on ‘Tobacco Products in the Proposed National Budget and Their Impact on Public Health’ held on Saturday (June 12). 

Bureau of Economic Research (BER) of Dhaka University, Bangladesh Network for Tobacco Tax Policy (BNTTP) and Tobacco Control & Research Cell (TCRC) of Dhaka International University jointly arranged the dialogue with Mozaffar Hossain Poltu, chairman of NATAB, in the chair.  

Dr Nasiruddin Ahmed, former chairman of the National Board of Revenue (NBR), moderated the event, while it was addressed, among others, by Prof Dr Habibe Millat, MP from Sirajganj-2, Shirin Akhter, MP from Feni-1, Barrister Shameem Haider Patwary, MP from Gaibandha-1, Dr Syed Mahfuzul Haque, national professional officer of WHO, and Syed Mahbubul Alam Tahin, technical adviser of The Union.  

Prof Rumana, also convener of the BNTTP, said that the government’s estimated revenue income from cigarette sector in 2020-21 fiscal year is about Tk 27,180 crore. If the government imposes specific taxation, the revenue income will be about Tk 30,520 crore in 2021-22 fiscal year. She called upon the government to impose tax on tobacco products as the proposal of anti-tobacco platforms. 

She also said that with the increase of per capita income, the price of essential commodities increases, but the price of tobacco products has not increased comparatively. 

She, however, commented that the proposed tobacco tax would increase the tobacco companies’ earning due to the faulty ad-velorem system. 

The speakers said that if the proposed tax is imposed, about 11 lakh adult smokers would quit smoking, while eight lakh new smokers will be discouraged. 

They said that the proposed price and tax on tobacco products are not expected.