Speakers at the Press Conference
MRP is Necessary for Sale of Tobacco Products and Specific Taxation on Tobacco Products
It is necessary to ensure the sale of tobacco products at maximum retail price (MRP) from the coming financial year and impose specific taxes on all types of tobacco products due to increase government revenue and to stop revenue evasion by tobacco companies. Tobacco control experts said that by doing this we can overcome the global economic crisis and it is also possible to make an important contribution to protect public health.
Today Saturday (27 May 2023) at 11 am, they said these things in a press conference on the online platform Zoom jointly organized by Bangladesh Anti-Tobacco Alliance (BATA) and Bangladesh Network for Tobacco Tax Policy (BNTTP) to ‘Ensure Sale of Tobacco Products at MRP and Demand Specific Tax on Tobacco Products’.
Hamidul Islam Hillol, Project Manager of BNTTP, presented the main speech at the press conference. In his speech, he said, a joint study by Bureau of Economic Research of University of Dhaka and BNTTP showed that the government is losing revenue of Tk 5000 crore every year due to the cigarettes’ selling at higher prices than that of MRP to the consumers. This was also confirmed by the findings of Large Taxpayer Unit (LTU). So, NBR has to take the necessary action regarding this issue immediately.
He also said that the government should quickly ensure the sale of cigarettes at the price written in the package to stop revenue evasion by selling it at higher prices. Also, specific taxation system should be imposed instead of ad-valorem taxation system to raise revenue and prevent evasion.
In the press conference, tobacco control experts said that 10 percent of the country’s total revenue comes from the tobacco sector. Further revenue from this sector is possible through specific taxation and ensuring sales at MRP.
In spite of having more consumers of low-tier cigarettes, the tax rate in this sector is lower than any other sector which is 57 percent. But in other sectors, it is 65 per cent. As a result, to increase the revenue, this level of supplementary duty should be increased from 57 per cent to 65 per cent.
The recommendations on the price and tax rate of tobacco products for the upcoming fiscal year 2023-24 were highlighted in the press conference with specific taxation provisions. The Budget proposal sets a maximum retail price of Tk 55 per 10 cigarettes of low-tier cigarettes, imposes a specific supplementary duty of Tk 35.75; Fixing a maximum retail price of Tk 70 per 10 sticks of medium-tier cigarettes, imposing a specific supplementary duty of Tk 45.50; Fixing a maximum retail price of Tk 120 per 10 sticks of high-tier cigarettes, imposing a specific supplementary duty of Tk 78.00; And it is proposed to impose a specific supplementary duty of Tk. 97.50 fixing the maximum retail price of Tk. 150 per 10 sticks of premium-tier cigarettes.
Besides fixing the retail price of 25 sticks of unfiltered biris at Tk 25, imposing specific supplementary duty at Tk 11.25 and increasing the supplementary duty from 30 per cent to 45 per cent; fixing the retail price of 20 sticks of filtered biris at Tk 20 levying specific supplementary duty at Tk 9 and increasing the supplementary duty from 40 per cent to 45 per cent; It has been recommended to fix the retail price of jorda at Tk 45 per 10 grams and impose a specific supplementary duty of Tk 27 and to set the retail price of Gul at Tk 25 per 10 grams and impose a specific supplementary duty of Tk 15. Besides imposing specific supplementary duty, it has been recommended to increase the overall duty on both products from 55 per cent to 60 per cent.
The former chairman of the National Revenue Board, Dr. Nasiruddin Ahmed was present as an expert to answer various questions of journalists at the press conference. Moreover, coordinator of Bangladesh Anti-Tobacco Alliance, Saifuddin Ahmed, President of Bangladesh Cancer Society, Professor Dr. Ghulam Mohiuddin Farooq and Advocate Syed Mahbubul Alam Tahin, Technical Consultant of The Union were also present their valuable insight. BNTTP’s project officer Ibrahim Khalil conducted the conference and Professor, Dr. Rumana Haque, University of Dhaka gave a welcome speech.
In addition, many media reporters and representatives of various anti-tobacco organizations were present at the press conference.