According to research institute Development Coordination, the government has lost an average of Tk 6,600 crore in revenue every year due to non-implementation of cigarette tax during the period 2019-20 to 2023-24. The company also claims that the rate of increase in the price of cigarettes in each category should be at least higher than the average inflation rate of the current fiscal year.

The development coordination also demanded to increase the price of cigarettes to the required level and reduce the level of cigarettes sold in the market from 4 to 3.

On Monday (23 December) in the afternoon of the military museum seminar in an event of coordination of development, these demands were given in the discussion meeting on the implementation of cigarettes in the fiscal year 2025-26.

Former Vice Chancellor of Bangladesh Agricultural University Professor Dr. MA Sattar Mandal. In addition, NBR First Secretary (Tax Policy) Mirza Mohammad Mamun Sadat, First Secretary (VAT Policy) Md. Moshiur Rahman, former member of NBR. Md. Sahidul Islam and the former head of the research department of the Commonwealth Secretariat Dr. Abdur Razzaq.

Abdulla Nadvi, Research Director of Development Coordination, presented the keynote at the event.

He said, the fear of negative impact on employment due to enforcement of cigarette is completely unfounded. Average inflation has been close to 10 percent throughout the current fiscal year. Therefore, the minimum declared retail price of all categories of cigarettes should be increased by 10 percent in the upcoming budget.

A call for enforcement on cigarettes to protect public health
There is no alternative to stronger tax laws to reduce tobacco use

First Secretary (Tax Policy) of NBR, Mirza Mohammad Mamun Sadat said, tobacco producing companies pay the highest amount of tax. Tax collection is our main responsibility. However, we have to keep the issue of public welfare in mind. He also said that NBR will implement the specific proposal to increase the tax on tobacco products.

First Secretary of NBR Moshiur Rahman (VAT policy) said that the law needs to be enforced. Smoking control cannot be achieved by raising revenue alone. Although public smoking and sale of open cigarettes are prohibited, this law remains only on paper.

Dr. Abdur Razzak said that tobacco control is difficult if the state does not take sufficient steps to protect people’s health. State interest should be prioritized in policy formulation. If revenue collection is prioritized over tobacco control, the stakes will be reversed.

He also said that to fulfill the responsibility of the state in health protection, the tax on cigarettes should be increased.

In the speech of the chief guest. MA Sattar Mandal said, a large section of teenagers are addicted to smoking. An unhealthy young society is growing before us. We must discourage it. Apart from this, tax on cigarettes at the rate of at least 10 percent considering inflation should be considered. Also, taxes on tobacco and other products should be levied at a reasonable rate.