‘Introduce specific taxes and raise tobacco products’ prices’

Staff Reporter :
In the upcoming national FY 2023-24 budget, the government must introduce a tier-based specific supplementary duty to raise the prices of cigarettes.
Such demand has been voiced by research and advocacy organization PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA) during a pre-budget press conference on tobacco taxation and prices, held on Saturday at the Tofazzal Hossain Manik Miah Auditorium of the National Press Club of the Capital. During the press conference, speakers particularly urged the policymakers to hike the retail price of the low-tier cigarettes to BDT 55 from BDT 40 for 10 sticks, followed by BDT 35.75 as specific supplementary duty (65 percent of the final retail price). It was also informed that, compared to other cigarette tiers, hiking prices at the low tier encourages the low-income demographic (users of such brands) to quit smoking.
A simultaneous price hike at the higher tiers also decreases the likelihood of users switching to cheaper brands. Reforming the tax system by introducing a specific tax, as recommended by the WHO, would further reinforce the effectiveness of the tobacco tax system.