Tobacco control experts on webinar
Tobacco revenue increases 3 times in 10 years
No risk of reducing revenue in law amendment
Ever since the government took the initiative to revise the Tobacco Control Act, tobacco companies have started various campaigns to dispute the initiative to amend the law. As always, they have started foretelling a drop of revenue if the law is enacted. They ran similar campaigns during the passage of the Tobacco Control Act in 2005 and the amendment of the Act in 2013. However, the fact is the government’s revenue from the tobacco sector has increased 3 times in the last 10 years although rates of tobacco use have decreased as a result of legislation.
Today, on 15 December 2022, Thursday, at 10:30 am, tobacco control experts addressed these important issues in a webinar titled “Unrounded Fear of Losing Revenue, Tobacco company’s Old Weapon and Reality” anchored by Bureau of Economic Research of University of Dhaka and Bangladesh Network for Tobacco Tax Policy.
While presenting the main speech in this webinar held on Zoom, Sushant Sinha, a researcher on tobacco control and special representative of Ekattor Television, said that the Tobacco Control Act was passed in the country in 2005. In the year of the law’s passage (2004-05 financial year), the revenue from tobacco products was TK 2,888 crores, the next year it increased to 3351 crores. The government received revenue of Tk 10,170 crore in the financial year 2012-13.
The revenue increased to Tk 12,555 crore in the year 2013 following the amendment of the Tobacco Control Act. The growth of revenue has never declined during these years rather the income revenue from tobacco products has increased almost 11 and a half times from FY 2004-05 to FY 2021-22. However, tobacco companies are continuously threatening of losing revenue in terms of every tobacco control initiative, including the passage of laws and amendments.
BNTTP project manager Hamidul Islam Hillol, presenting the second article in the webinar, said that tobacco companies were foretelling a drop in revenue if they took the initiative to amend tobacco control laws. NBR also speaks to that fear. But there is no precedent of revenue waning in the statistics.
However, the proposed amendment of the Tobacco Control Act calls for an embargo on the retail sale of cigarettes, licensing system, and a prohibition on smoking zones, the sale-production-import of e-cigarettes, which is crucial to be implemented to shield public health. Besides, a tobacco tax policy must be formulated and implemented to materialize the Prime Minister’s announcement.
Abdullah Nadvi, director of Unnayan Somonnoyok, as a panelist in the webinar, said that indirect tax levied upon goods and services, should not be a matter of concern, as the amount is very meager and eighty percent of which is paid by the consumer ultimately. We need to focus more on direct taxes rather than indirect. In spite of decreasing sales, high taxation will not have much impact on revenue. Rather, it will help diminish the number of tobacco users and discourage young people.
Panel discussant Dhaka International University Tobacco Control Android Research as Sellers and Project Md. Bazlur Rahman said, “Sada Pata is never given importance as there is no tax on it and it’s market is open. Cigarettes are always more vital in politics despite the using of zarda, gul, and white leaves is very high. So it is crucial to pay special attention to these products.
The webinar, conducted by BNTTP Project Officer Ibrahim Khalil, Nasir Uddin Sheikh, country manager of Vital Strategies, tobacco control experts, development workers and journalists are also present.