Staff Reporter, Dhaka : As the prices of and taxes on all tiers of cigarettes in the proposed 2025-26 FY budget have been kept unchanged, it will deprive the government of additional revenue worth at least BDT 20,000 crore and encourage the youth into lighting up. However, to seize the opportunity of earning additional revenue and improve the condition of public health significantly, anti-tobacco activists suggest that the government must raise the prices of all tiers of cigarettes and particularly, must merge the low and medium tiers of cigarettes, constituting 80 percent of current cigarette market in Bangladesh, into a new tier with the minimum retail price (MRP) of BDT 90 for 10 sticks.

The proposed budget has kept the prices of bidi unchanged for the 6th consecutive time. The supplementary duty on bidi has also remained the same for the 10th consecutive time, which is also another frustrating aspect. The prices of and taxes on smokeless tobacco products, i.e., jarda and gul, has also been unchanged. This is quite concerning as more than 50 percent of all tobacco users consume smokeless tobacco products, with the poor and the women being the majority of them. Once the inflation and increase in per capita income are taken into account, these deadly products will become cheaper and more affordable. This will encourage the poor, particularly the women, more into using smokeless tobacco products, thus increasing health risks involved.

The advance tax on net sale price of cigarette manufacturers has been raised to 5 percent from existing 3 percent in the proposed budget. The supplementary duty on cigarette paper imported by commercial importers has also been raised to 300 percent from existing 150 percent. While these steps are undoubtedly positive, these fall short of being sufficient to safeguard public health.

In his reaction to the proposed budget, ABM Zubair, Executive Director, PROGGA (Knowledge for Progress) said, “Tobacco claims 442 lives each day in Bangladesh. The proposals put forth by anti-tobacco activists, if realized, would reduce tobacco use and tobacco-related deaths and raise revenue earnings of the government.”

It should be noted that, the prevalence of tobacco use among adults (15 y/o and above) stands at 35.3 percent. If the finalized budget reflects the proposals of anti-tobacco activists, it would help the government earn additional revenue and prevent the premature death of 1.7 million people, including 900,000 youth.