Economy
Bangladesh Economic Association Urges 70% Tax on Cigarettes in Budget Proposal
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.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
