Anti-tobacco activists demand to raise prices of tobacco products in next budget

Research and advocacy organisations Progga (Knowledge for Progress) and Anti-Tobacco Media Alliance (Atma) have urged the government to introduce a tier-based specific supplementary duty to raise the prices of cigarettes in the upcoming national budget for 2023-24 FY, said a press release.

During a pre-budget press conference held on Saturday at the National Press Club of the capital, they urged the policymakers to hike the retail price of the low-tier cigarettes to Tk55 from Tk40 for 10 sticks, followed by Tk35.75 as specific supplementary duty (65% of the final retail price).

Speakers at the press conference also informed that compared to other cigarette tiers, hiking prices at the low tier encourages the low-income people to quit smoking.

Qazi Kholiquzzaman Ahmad, convener of the National Anti-Tobacco Platform, said, "As per the conditions set by the IMF for its loan package, Bangladesh needs to raise the revenue by at least an additional 0.5% of its GDP in the next FY. By hiking the prices of tobacco products, a considerable portion of the additional amount can be managed."

Mahfuz Kabir, research director of the Bangladesh Institute of International and Strategic Studies, said, "Around 75% of all cigarette users are the consumers of low-tier brands. Unfortunately, the supplementary duty imposed on this tier stands at a mere 57%. Raising the number to at least 65% would help reduce cigarette use and increase govt. revenue."

The organisations also proposed that in the medium-tier of cigarettes, the retail price should be set at Tk70 from the existing Tk65 for 10 sticks, followed by Tk45.50 as a specific supplementary duty. In the high-tier, the retail price and specific supplementary duty for 10 sticks should be Tk120 from Tk111 and Tk78 respectively.

Meanwhile, in the premium tier, the numbers should be Tk150 for 10 sticks from Tk142 and Tk97.50 respectively.

Speakers said the implementation of the proposals would raise Tk9,600 crore in additional revenues and prevent the premature deaths of 4.88 lakh adults and 4.92 lakh youths.

Syed Yusuf Saadat, research fellow, Centre for Policy Dialogue (CPD), Md Mostafizur Rahman, lead policy advisor in Bangladesh, Campaign for Tobacco-free Kids, Mortuza Haider Liton, convener of Atma, ABM Zubair, executive director, Progga among many others were present at the event.