Significant increase in tobacco product prices in budget urged

Significant increase in tobacco product prices in budget urged

Dhaka, June 10 - To shield future generations from the deadly grip of tobacco and to curb the rise in new tobacco users, Dhaka Ahsania Mission has called for a significant increase in tobacco product prices in line with inflation.

The call was made at an event titled “Post-Budget Reaction: Tobacco Pricing and Taxation,” held at the Dhaka Ahsania Mission on Monday.

The keynote speaker, Iqbal Masud, Director of the Health and WASH Sector at Dhaka Ahsania Mission, highlighted that while the prices of essential goods have surged significantly in recent years, tobacco product prices have not seen a comparable increase. Additionally, the rate of tobacco tax hikes in Bangladesh remains much lower than in neighboring countries.

In the proposed budget for the fiscal year 2024-25, the retail price of a 10-stick pack of low-tier cigarettes has been raised from Tk 45 to Tk 50, translating to a mere 50 paisa increase per stick.

Although the budget has adjusted the prices of cigarettes, ‘jarda’, and ‘gul’, the price of bidis has remained static. Bidi consumption is notably higher among the lower-income groups in the country, thus the proposed budget neglects their health protection.

Over the past few years, the prices of essential commodities have increased by 40 to 90 percent. However, in the proposed budget, tobacco product prices have only been raised by 4.48 to 11.11 percent. Meanwhile, per capita income has increased by about 12 percent in the fiscal year 2024-25 compared to 2023-24. Despite the rise in essential item prices, tobacco products remain affordable for the young and impoverished population.

This nominal increase in tobacco product prices is unlikely to deter the poor and young population from smoking. Given the increase in per capita income and inflation, the real price of cigarettes has actually decreased compared to previous years. Consequently, the consumption of cheap cigarettes is likely to surge, significantly increasing health risks.

In Bangladesh, more than 35 percent of adults use tobacco, and over 161,000 people die annually from tobacco-related diseases. If the anti-tobacco proposals are adopted in the final budget, it could prevent the premature deaths of over 1.1 million people, including nearly 500,000 young individuals, in the long term.

Therefore, if the prices and taxes on tobacco products are not raised to the levels proposed by anti-tobacco organizations, the government will miss out on the opportunity to collect an additional 10,000 crore Taka in revenue, and the healthcare costs associated with tobacco-related diseases will increase. Additionally, out-of-pocket expenses for the general population will rise.

At the event, Mukhlesur Rahman, Deputy Director of the Health Sector at Dhaka Ahsania Mission, Shariful Islam, and Project Coordinator of the Tobacco Control Project, among others were present.-UNB