Anti-tobacco group says budget ‘awfully against' public health

An anti-tobacco group has criticised the finance minister for keeping unchanged the prices of higher and premium segments of cigarettes and smokeless tobacco.

Progga, which coordinates anti-tobacco organisations in Bangladesh with the support of the Bloomberg Philanthropies, said the proposal was “awfully against the public health".

It said the proposed budget would "satisfy the multinational company like British American Tobacco that produces most of the high brand cigarettes".

A joint statement by Progga and the Anti-Tobacco Media Alliance or ATMA said if the proposed budget is implemented, it will reduce the 'real prices' of most tobacco items leading to more deaths from tobacco-related illnesses.

AMA Muhith, however, increased the prices of non-filter 'bidi' fixing the inclusive tax price of 25 sticks and 20 sticks of filter 'bidi' at Tk 15. The rate is effective from Thursday.

Muhith also imposed a surcharge of 2.5 percent on the income from sales of cigarette, bidi, zarda, gul and other tobacco items.

The government and the society incur additional health cost due to the consumption of these tobacco products, Muhith said justifying the surcharge.

But Progga is not happy. It said in the past one year, the per capita income in Bangladesh has increased by 9.27 percent  and if inflation is considered, tobacco products will be cheaper to consumers.

“Moreover, the proposed tax structure will ultimately benefit the multinational tobacco companies. On the other side, the lower slab has been separated into two new slabs naming ‘local manufacturer’ and ‘international manufacturer’ which complicated tobacco tax structure."

 “The early complicated measure, ad valorem, is upheld instead of imposing the specific tax on tobacco products suggested by the anti-tobacco activists," Progga said.

The proposed budget has set prices for the lower slab of every 10 cigarettes by the local manufacturers at Tk 27, up from Tk 23, and Tk 35 for international tobacco makers.

There are price increases of 17.4 percent for the local manufacturers and around 52.2 percent for the international tobacco makers, but the tobacco companies will benefit from this due to the faulty taxation system (ad valorem).

Progga said the finance minister is "providing privilege to the international tobacco manufacturing company without increasing the tax on higher and premium slab cigarettes".

The British American Tobacco Bangladesh or BATB is the only multinational tobacco producer that makes almost all types of cigarettes in Bangladesh.

At present, there are 14 brands from BATB, and only four of them belong to the lower slab.

“It appears that the multinational tobacco company will be gaining from the unchanged tax rate on higher and premium slab cigarettes which is a matter of concern."

Progga said the long demand for a single tobacco tax structure from anti-tobacco organisations has not been reflected in the proposed budget too.

Over half of the tobacco users consume smokeless tobacco or SLTs such as zarda and gul but the proposed budget has not increased taxes on those products.

“The poor population, especially the women are more prone to consuming those. There are no initiatives to protect this large population from the health damage which is very disappointing." 

The finance minister, in his budget speech, vowed to stop 'bidi' production in three years but there are “no reflections” of the issue in 'bidi' price increase plan, Progga said.