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Govt urged to raise prices of low-tier cigarettes

Speakers at a seminar have proposed for raising the price of low-tier cigarettes to discourage smoking as well as minimize health risks.

If the prices of cigarettes are raised, it will boost revenue generation of the government as well, they said.

They came up with the suggestions at the seminar organized jointly by Dhaka Ahsania Mission and the Economic Reporters’ Forum (ERF) titled “Tobacco Price and Tax” held at the ERF auditorium in the city on Saturday.

Presided over by ERF President Sharmeen Rinvy, its general secretary SM Rashidul Islam, Dhaka Ahsania Mission deputy director Mokhlesur Rahman, CTFK Grants manager Abdus Salam Mia spoke, among others, on the occasion.

The speakers said although the low-tier cigarettes occupy almost 75% of the whole industry, but its price remained unchanged over the last two years. As a result, the number of smokers at this level is not declining.

Director (research) of Unnayan Shamannay Abdullah Nadvy made the key-note presentation.

The speakers said that the price of cigarettes at the low-tier has remained unchanged over the last two years.

They suggested that the price of cigarettes should be increased considering the rise in per capita income and inflation.

They said there is no alternative to raising the price of tobacco products to turn Bangladesh as a tobacco-free country by 2041.

Nadvi in his key-note presentation said that the current duty structure of cigarettes is complex and it should be more simplified.

He proposed for raising the price of every cigarette packet of 10 sticks at the low-tier to Tk50 from the existing Tk39 while in the mid-tier, the price of cigarette packets should be raised Tk75 from Tk63.

Side by side, Nadvy suggested for raising the price of cigarettes at the high-tier specifically.

“If this proposal is implemented, the revenue of the government will be boosted while the number of smokers will be reduced by 1.3 million. Besides, some 900,000 youths will be discouraged to continue smoking.” he added.

ERF general secretary SM Rashidul Islam said that the government is in dilemma over tobacco as it wants to control tobacco at one hand, and the government also depends on tobacco products for boosting revenue on the other hand.

“But, in order to reduce the number of smokers, the price of cigarettes at the low-tier should be increased as around 75% smokers consume cigarettes at the low-tier.” he added.

(DT)

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