The tax levied on the price of tobacco products in Bangladesh at a percentage rate or in an advelorem manner is highly flawed and not properly enforced. As a result, the government is being deprived of the desired revenue, the profits of the tobacco companies are increasing unexpectedly and the tobacco companies are left with the opportunity to evade taxes. At the same time, due to this method, tobacco products are becoming readily available to the common people.
In order to overcome this situation, it is necessary to implement ‘precise taxation’ system instead of ‘ad valorem’ taxation system on an urgent basis like the countries which have succeeded in controlling tobacco in the world.
This article written by Ibrahim Khalil, project officer, Bangladesh Network For Tobacco Tax Policy. To read the full article in Bengali please click here.