Tax proposals on tobacco jitter activists, cheer companies: Adhunik

Tax propositions on tobacco this year as in the past do not weigh heavily enough on the backs of tobacco companies to deal a massive blow to them, said Adhunik (we prevent smoking), a leading anti-tobacco organisation.

‘Instead, the budget offers a mixed bag of pluses and minuses that tilts the balance much more in favour of tobacco companies than their adversaries, anti-tobacco campaigners,’ Adhunik said in a statement giving its reactions to this year’s budget proposals concerning tobacco.

The statement signed by Adhunik president Amanullah Khan, FCA lamented, ‘Disregarding our recommendations to impose progressively accelerated tax increases, this year’s budget like the previous years uses this effective tool against tobacco very sparingly. It seeks to revise slightly upwards the price of local brand of low segment of cigarettes from Tk 23 to Tk 27 and raise the supplementary duty rate from 50 per cent to 52 per cent compared to the last year which is quite inadequate to dig deep into the pockets of smokers in a bid to wean them off the deadly habit.’

‘To add to the frustration of the campaigners and to the relief of tobacco manufacturers far larger segments viz medium and high have been left unscathed with the prices and rates remaining unchanged from the previous year, leaving the prices to be set by the manufacturers,’ the statement said.

‘However, the international brands of low-segment cigarettes are being subjected to a price fixation of Tk 35 per packet and supplementary duty of 55 percent which is a move in the right direction.’

The anti-tobacco organisation, however, hailed the budget proposal to apply 2.5 per cent surcharge on income derived from the business of manufacturing and selling cigarettes, bidis, jarda, gul including other tobacco products.

It also called on the government to consider levying an additional tax in the form of sin tax as a further deterrent to tobacco and allied products widespread prevalence. Adhunik lauded the finance minister’s plan to stop production of ‘bidis’ altogether within a period of three years in view of the grave public health risks posed by ‘bidis’ and the huge expenditure involved in treating the diseases related to its production and consumption.