Tobacco firms misleading govt with false info Experts

Business Report :

Public health experts and researchers have warned that multinational tobacco companies are misleading the government with false information to block amendments to the tobacco control law and prevent tax hikes on cigarettes.

They made the remarks at a workshop titled “Strengthening Tobacco Control Law and Tackling Industry Propaganda on Tax Hikes,” held at Dhaka University’s Economic Research Bureau (ERB)on Thursday.

The event was jointly organized by the ERB and the Bangladesh Network for Tobacco Tax Policy (BNTTP).

Presenting the keynote paper, Hamidul Islam Hillol, Project Director at ERB, said tobacco companies circulate fabricated reports about cigarette smuggling before the national budget to discourage tax increases. “Most of these reports are identical, unverifiable, and never lead to arrests. Research shows cigarette prices in Bangladesh are still lower than in neighbouring countries,” he said.

Hillol added that revenue from cigarettes rose from Tk5,122 crore in FY2008-09 to Tk31,077 crore in FY2022-23, proving that higher taxes have not hurt revenue. “The idea that price hikes fuel smuggling or revenue loss is a myth spread by the industry,” he said.

Sushanto Sinha, tobacco control researcher and special correspondent at Ekattor TV, accused multinational companies of inflating operational costs and selling cigarettes above the maximum retail price to evade tax.
“They deprive the government of around Tk5,000 crore each year, yet claim to be losing money,” he said.
Sinha recommended replacing the existing multi-tiered tax system with a specific tax structure starting with Tk1 per stick in the next fiscal year which he said could generate Tk20 crore in daily revenue while supporting public health goals.
Experts also called for urgent amendments to the Smoking and Tobacco Products Usage (Control) Act, last updated in 2013, to close loopholes allowing indirect tobacco advertising and so-called corporate social responsibility (CSR) campaigns.
The workshop, attended by 20 national journalists, concluded with a call for aligning Bangladesh’s tobacco policy with WHO’s Framework Convention on Tobacco Control (FCTC). Speakers warned that without bold tax and policy action, the government’s goal of making the country tobacco-free by 2040would remain out of reach.