Significantly increasing cigarette prices and then imposing effective tax rates on those prices have been proven to be the most effective measure to reduce cigarette smoking prevalence. Yet, in Bangladesh, because of not ensuring effective cigarette taxation- more than 15 percent of the adult citizens are using cigarettes.
However, the recent political changes in the country, have created the scope of ‘out of the box’ thinking regarding cigarette taxation. Discussants at a seminar titled “Effective Cigarette Taxation” said so today (Thursday, 26 September 2024).
The seminar was organized by the non-government think tank Unnayan Shamnnay at the Bishwo Shahitto Kendro Bhaban, Dhaka. Center for Policy Dialogue’s Honorary Fellow Dr. Mustafizur Rahman grace the event as the Guest of Honor, and BIDS’ Research Director Dr. S. M. Zulfiqar Ali was present as the Session Chair. Other expert discussants at the seminar were- Dr. Shafiun Nahin Shimul (Professor, Health Economics, Dhaka University), Dr. Suzana Karim (Associate Professor, Health Economics, Dhaka University), and Dr. Nazmul Islam (Associate Professor, Economics, Dhaka University). Representatives from anti-tobacco organizations, university students, and researchers participated in the discussion session. Unnayan Shamannay’s Research Director- Abdullah Nadvi presented the context paper for the seminar.
Abdullah Nadvi, while presenting the paper, pointed out that because of not ensuring effective cigarette taxation, not only health costs for the citizens are soring, but also the government is missing out on about BDT 6.6 billion in taxes. Upon pointing out that cigarettes are cheapest in Bangladesh (compared to most other countries), Dr. Shimul inferred that effective cigarette taxation has been proven to be the most ccost-effectivemeans of reducing smoking prevalence. Dr. Nazmul emphasized on the need for raising cigarette prices for stopping the youth of the country from smoking initiation. Despite anti-tobacco activists relentlessly pointing out the benefits of effective cigarette taxation, their recommendations have rarely been reflected in the government’s decisions. Dr. Suzana believes this has been the case due to certain influential quarters within the policymaking community favoring the cigarette companies.
In his remarks as the Guest of Honor, Dr. Mustafizur Rahman urged the policymakers to strive towards reducing their dependence on tobacco companies for revenue. He further recommended switching from ad valorem cigarette taxes to imposing specific supplementary duties on cigarettes. This, according to Mustafizur, will increase government’s revenue collection and reduce scope of tax evasion by the cigarette companies. The session Chair- Dr. S. M. Zulfiqar Ali, in his closing remarks strongly criticized the trend of nominally increasing cigarette prices without considering the rising per capita income and inflation. Unnayan Shamannay’s Head of Program- Shaheen Ul Alam moderated the session.
.png "Halim-&-Firni")
