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PROGGA-ATMA want three price tiers in cigarette to hike revenue, reduce use

Published : Tuesday, 25 March, 2025 at 12:00 AM  Count : 382
Research and advocacy organization PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA) have urged policymakers to reduce the number of cigarette price tiers from 4 (four) to 3 (three) in the upcoming national budget for FY 2025-26.

During the event at the National Press Club, speakers said that the existing four-tiered price system in cigarette bars any tax and pricing measure from playing an effective role.

Against this backdrop, the low and medium tiers of cigarettes should be merged and prices for the new tier should be hiked so that it can contribute additional revenue to government coffers and play a role in discouraging cigarette use among the youth and the poor.

PROGGA and ATMA also presented a number of proposals to be incorporated in the upcoming budget for FY 2025-26.

Dr. Mahfuz Kabir, research director of Bangladesh Institute of International and Strategic Studies (BIISS) and Member of Local Government Reform Commission, said, "Currently more than 80 percent of all cigarette users belong to low and medium tiers.

Merging these two tiers into one can hike the government's revenue inflow and reduce cigarette use. The additional revenue can significantly contribute to realizing the government's ongoing reform projects."

Daulat Akter Mala, president, Economic Reporters' Forum (ERF), said, "The government should bring all tobacco products out of the purchasing capacity of people to protect public health."

As presented during the event, an analysis of the average retail prices of essential commodities in seven metropolitan cities of the country (Dhaka, Chattogram, Rajshahi, Khulna, Sylhet, Barisal and Rangpur) between 04 July 2021 and 04 July 2023, shows that price of loose sugar has seen a 89 percent hike in this time period. However, during this same timeframe, the hike in the prices of different tiers of cigarettes ranged between 6 -15 percent only.

Among the tax and pricing measures presented during the event are as follows: The low and medium tier should be merged into one and prices for 10 sticks of the merged tier should be set at TK90 while the retail price of high-tier cigarettes should be kept at existing BDT 140 for 10 sticks.

The prices for 10 sticks of premium cigarettes should be raised to BDT 190 while the supplementary duty (SD) on all cigarette tiers should be the existing 67 percent.

For non-filtered bidi, the retail price should be TK25 for 25 sticks. In the case of filtered bidi, the retail price for 20 sticks should be set at TK20. Both prices should be followed by a 45 percent SD.

On smokeless tobacco, the retail price for 10 grams of jarda and gul should be TK 55 and TK 30, followed by 60 percent SD. The budget proposals also suggest retaining 15 percent VAT on the retail prices of tobacco products and continuing the existing 1 percent health development surcharge (HDS).

Speakers said the budget proposals placed by anti-tobacco movement, if realized, can help the government raise a staggering BDT 20,000 crore in additional revenue, which will come helpful in reaching revenue targets and improve public health.

Implementation of such proposals will also help prevent the premature deaths of 1.7 million Bangladeshis, including nearly 900,000 youths.

The discussants include Mortuza Haider Liton, convener of ATMA, Mizan Chowdhury, Co-convener of ATMA, ABM Zubair, Executive Director, PROGGA, and leaders of different anti-tobacco organizations. Nadira Kiron, Co-convener of ATMA, hosted the event while Md. Hasan Shahriar, Head of Tobacco Control, PROGGA, presented the budget proposals. �"UNB



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