The Bangladesh Economic Association (BEA) has put forth a proposal for a substantial 70 percent tax on all types of cigarettes and tobacco in the upcoming budget. The association envisions a dual impact, anticipating a 66 percent reduction in smoking rates and a significant revenue boost of Tk1,700 crore for the state.
During the pre-budget discussion at the National Board of Revenue (NBR) Building on Sunday, BEA’s General Secretary, Professor Dr. Md. Aynul Islam, presented the proposal. The Vice President of the association, Professor Hannana Begum, was also in attendance.
According to BEA’s proposal, the imposition of a single supplementary duty of 70 percent on all cigarette types would result in an average price increase of 130 percent. This, the association argues, would lead to a substantial reduction in smoking, with approximately 70 lakh smokers quitting and 71 lakh young individuals refraining from initiating the habit. Additionally, the proposed tax is expected to generate an additional Tk1,700 crores in government revenue.
The BEA’s recommendations extend to imposing a 70 percent tax on all tobacco products, including smokeless varieties such as jorda, gul, and sadapata. Moreover, the association advocates for a tax of Tk 4.90 on each 25-shalak packet of bidi, which could contribute an additional Tk800 crore to government revenue.
The BEA believes that such tax measures, primarily targeting tobacco products, can contribute not only to increased revenue but also play a role in addressing the ongoing economic crisis. The association emphasizes the need for a fair approach, suggesting that additional income taxes be considered for the super-rich, rich, and upper-middle-class segments, while sparing the burden on the economically challenged groups such as the poor, lower class, lower middle class, and middle class.
