Use of tobacco to increase under proposed budget: Progga 

The proposed budget decision of slightly increasing low-tier cigarette prices will reduce the actual price of tobacco products increasing consumption among the poor and young people, said anti-tobacco organisation Progga (Knowledge for Progress). 

As per the minister's proposal, the minimum price for 10 sticks of low-tier cigarettes will be set at Tk40 (Tk1 increase from previous fiscal), with a supplementary duty of 57%.

"The price of cheap cigarettes has been kept almost unchanged and there is no directive in the proposed budget to introduce a specific tax system for long-standing anti-tobacco demands. We demand that the price of tobacco products be increased beyond the purchasing power of the people by imposing specific taxes in the final budget," said Progga Executive Director ABM Jubayer Thursday (9 June) in an immediate reaction to the proposed budget for FY2022-23. 

The prices of low-grade tobacco products such as bidi, jarda and gul, which are harmful to health, have been kept unchanged in the proposed budget, which is very disappointing in terms of public health, Progga said in a statement. 

"More than 50% of tobacco users use smokeless tobacco, most of whom are poor and women. Considering the increase in per capita income, these products will become much cheaper and more readily available. As a result, the poor, especially women, will be encouraged to use smokeless tobacco products and health risks will increase," it read.

As per the proposed budget, the minimum price of mid-tier cigarettes will be set at Tk65 (Tk2 hike), high-tier cigarettes at Tk111 (Tk9 hike), and premium tier cigarettes at Tk142 (Tk7 hike), with a supplementary duty of 65% for these tiers.  

However, the government has decided to keep the existing prices of bidi unchanged.

Currently, the minimum price of 25-stick handmade bidi is Tk18, 12-stick bidi cost Tk9 and 8-stick bidi Tk6 – with a supplementary duty of 30% for all three.

The price of filter-tipped bidi is Tk19 for 20 sticks and Tk10 for 10 sticks, with a supplementary duty of 40% for both.

Also, the prices of Jarda – Tk40 for 10gm, and Gul, Tk20 for 10gm – are to remain the same with a supplementary duty of 55% for both.

According to Progga, if the anti-tobacco proposal is implemented in the final budget, the government will get additional revenue of Tk 9,200 crore from cigarettes. 

Rising prices of tobacco products will also discourage their use among low-income people and will significantly increase government revenue in these sectors, said Progga.