The taxes on tobacco proposed for the next year goes against the government's goal of getting the country rid of tobacco by 2040, anti-tobacco campaigners told a post-budget press conference yesterday.
The significant increase in the prices and taxes on local bidis and non-smoking tobacco is laudable, but little hike in high-priced cigarettes manufactured by multinational companies is very frustrating, they mentioned.
For four types of tobacco products, there are four price slabs-- low, medium, high and premium. And there are different prices and taxes for each of the slabs.
Keeping the price slabs that are complicated and create scopes for tax dodging is also condemnable, the campaigners told the press conference organised by PROGGA and Anti-Tobacco Media Alliance (ATMA) at the capital's Jatiya Press Club.
Some one lakh people die each year due to diseases caused by tobacco consumption – a concern that can be addressed by levying higher tax, according to World Health Organization.
As per the proposed budget, with the increase in base price and supplementary duty, the prices of 25 sticks of filter-less bidis and 20 sticks of filtered bidis will be Tk 10.61 and Tk 12.03 respectively, which is over a 50 percent rise.
"This is not enough… and its continuation is important to take bidi price beyond the capacity of the poor," said economist Prof Dr Rumana Haque of Dhaka University in her keynote presentation.
As bidis' main consumers are low income people, it is expected that the proposed increase in tax would reduce bidi consumption among them, while a fewer new smokers would start smoking bidis, she said.
On the other hand, the increase in supplementary duty on non-smoking tobacco -- jarda and gul -- from 60 percent to 100 percent and import duty from 100 percent to 150 percent is laudable, mentioned Rumana.
However, for medium and high-slab cigarettes that now cost Tk 45 and above per 10 sticks, the supplementary duty has been increased only by one percent -- from 61 percent to 62 percent and from 63 percent to 64 percent respectively.
Of the total 19 types of cigarettes of these two categories, 16 are manufactured by three multinational companies.
The budget proposed increasing price of the low-slab of cigarettes from the existing Tk 18 to Tk 23. But income tax on the cigarette manufacturing companies has not been increased from 45 percent now.
"Tax rate on the high-priced cigarettes has remained almost the same. Thus, the multinational companies are actually given the highest privileges," she mentioned.
Given inflation and increase in per capita income, levying lower tax on higher-priced cigarettes goes against public health, said Rumana, demanding elimination of price slabs of tobacco products.
The companies can present medium category tobacco products as the low category ones, thus paying low tax, said campaigners, demanding an imposition of specific 70 percent tax on the retail prices of all tobacco products.
"We welcome the prime minister's declaration of making the country free of tobacco by 2040, but it needs a roadmap, which is lacking in the budget," National Prof Dr Abdul Malik said.
Resource :http://www.thedailystar.net/city/anti-tobacco-activists-demand-70pc-flat-tax-1238770
The significant increase in the prices and taxes on local bidis and non-smoking tobacco is laudable, but little hike in high-priced cigarettes manufactured by multinational companies is very frustrating, they mentioned.
For four types of tobacco products, there are four price slabs-- low, medium, high and premium. And there are different prices and taxes for each of the slabs.
Keeping the price slabs that are complicated and create scopes for tax dodging is also condemnable, the campaigners told the press conference organised by PROGGA and Anti-Tobacco Media Alliance (ATMA) at the capital's Jatiya Press Club.
Some one lakh people die each year due to diseases caused by tobacco consumption – a concern that can be addressed by levying higher tax, according to World Health Organization.
As per the proposed budget, with the increase in base price and supplementary duty, the prices of 25 sticks of filter-less bidis and 20 sticks of filtered bidis will be Tk 10.61 and Tk 12.03 respectively, which is over a 50 percent rise.
"This is not enough… and its continuation is important to take bidi price beyond the capacity of the poor," said economist Prof Dr Rumana Haque of Dhaka University in her keynote presentation.
As bidis' main consumers are low income people, it is expected that the proposed increase in tax would reduce bidi consumption among them, while a fewer new smokers would start smoking bidis, she said.
On the other hand, the increase in supplementary duty on non-smoking tobacco -- jarda and gul -- from 60 percent to 100 percent and import duty from 100 percent to 150 percent is laudable, mentioned Rumana.
However, for medium and high-slab cigarettes that now cost Tk 45 and above per 10 sticks, the supplementary duty has been increased only by one percent -- from 61 percent to 62 percent and from 63 percent to 64 percent respectively.
Of the total 19 types of cigarettes of these two categories, 16 are manufactured by three multinational companies.
The budget proposed increasing price of the low-slab of cigarettes from the existing Tk 18 to Tk 23. But income tax on the cigarette manufacturing companies has not been increased from 45 percent now.
"Tax rate on the high-priced cigarettes has remained almost the same. Thus, the multinational companies are actually given the highest privileges," she mentioned.
Given inflation and increase in per capita income, levying lower tax on higher-priced cigarettes goes against public health, said Rumana, demanding elimination of price slabs of tobacco products.
The companies can present medium category tobacco products as the low category ones, thus paying low tax, said campaigners, demanding an imposition of specific 70 percent tax on the retail prices of all tobacco products.
"We welcome the prime minister's declaration of making the country free of tobacco by 2040, but it needs a roadmap, which is lacking in the budget," National Prof Dr Abdul Malik said.
Resource :http://www.thedailystar.net/city/anti-tobacco-activists-demand-70pc-flat-tax-1238770
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