Stronger laws, higher taxes key to reducing tobacco use: PROGGA, ATMA tells NBR chair

The advocacy groups link effective reforms to reduced health costs and economic growth

Knowledge for Progress, or PROGGA and the Anti-Tobacco Media Alliance, or ATMA, have called on the National Board of Revenue, or NBR, to strengthen tobacco control laws and adopt more effective taxation measures.

In a meeting with NBR chief Md Abdur Rahman Khan on Tuesday, a delegation from two advocacy organisations emphasised that tougher regulations and higher tobacco taxes would help improve public health and increase government revenue.

The delegation highlighted how increasing tobacco product prices through higher taxes is a globally recognised method to discourage tobacco use, according to a press release.

They added that due to a flawed taxation system, tobacco products remain affordable in Bangladesh, encouraging addiction among youth and the economically vulnerable.

“The high prevalence of tobacco use claims nearly 161,000 lives each year in Bangladesh. As tobacco-related deaths and diseases grow higher in number, so does the government's expenditure in the health sector,” the delegation said.

The NBR chair appreciated the advocacy groups, saying: "I want to thank PROGGA and ATMA in particular because almost all of my stakeholders usually demand tax reduction whereas these two organisations are raising demands for a tax hike.”

“All of your reform proposals are reasonable. We will take these into consideration while formulating the national budget. I will also do the needful to facilitate the amendment of the tobacco control law," he added.

The speakers proposed several measures, including:

• Increasing cigarette prices in line with inflation and per capita income.

• Replacing the multi-tiered ad valorem tax system with a uniform or mixed [specific and ad valorem] taxation system.

• Raising the supplementary duty on low-tier cigarettes to at least 70 percent.

They argued that stronger tobacco control laws do not lead to revenue losses.

Citing NBR data, they demonstrated that government revenue from the tobacco sector has consistently risen following stricter regulations. For example:

• After the first tobacco control law in 2005, cigarette revenue grew by 17.97 per cent and 37.52 per cent in FY 2005-06 and FY 2006-07 respectively.

• Following the 2013 amendment of the law, revenue increased by 25.51 per cent and 46.52 per cent in FY 2013-14 and FY 2014-15 respectively.

Speakers also discussed the health ministry's efforts to amend the tobacco control law, emphasising the need for NBR's cooperation to ensure its swift implementation.

“NBR must not allow itself to get misled by the tobacco industry's ill tactics and provide all assistance necessary to ensure a smooth and speedy passage of the draft amendment,” they said.

The delegation attending the meeting includes Prof Dr Sohel Reza Chowdhury, head of the Department of Epidemiology and Research, National Heart Foundation Hospital and Research Institute; Mortuza Haider Liton, ATMA convener; Nadira Kiron and Mizan Chowdhury, both co-convener of ATMA; ABM Zubair, executive director, PROGGA, and Md Hasan Shahriar, head of programmes, PROGGA