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Tax the smoke

We need effective taxation to curb smoking and ensure a healthy future for our youth

Update : 27 Nov 2024, 02:39 PM

In Bangladesh, tobacco use, particularly smoking, poses a grave threat to public health. According to the World Health Organization, approximately 161,000 people die each year from tobacco-related diseases. According to the Global Youth Tobacco Survey of 2013, 6.9% of youth (ages 13-15) in Bangladesh use tobacco in some form. 

Taking effective measures to control the harmful effects of tobacco and protect youth is crucial. In this regard, increasing taxes on tobacco products can play a vital role.

Bangladesh has the highest adult tobacco use rate among South Asian countries (35.3%), and third in the world. Young people are particularly price-sensitive, and higher prices reduce their ability to purchase tobacco products. Research shows that a 10% increase in tobacco prices leads to a 4% reduction in smoking. This indicates that increasing taxes can significantly reduce smoking rates, especially among the youth.

Tobacco companies often use price promotions like discounts and multi-pack offers to attract young people. Higher taxes make these promotions less effective and more expensive for the companies to implement. Increased taxes make it difficult for them to carry out these activities, helping to protect young people from the lure of tobacco.

Increasing tobacco taxes increases government revenue. A fixed amount of tax per pack of cigarettes, regardless of its price, makes tax administration easier and prevents companies from manipulating prices to fall into lower tax brackets. 

Increasing taxes on low-tier cigarettes can make a big impact on tobacco-control. For example, say the current price of a low-tier cigarette packet is Tk45, and the supplementary duty is 58%. If there is a specific tax increase of Tk 30 for a single pack, the price of the most affordable cigarettes will also be such that it discourages young people and low-income individuals from smoking. In this way, tobacco taxes not only reduce smoking rates but also contribute to the treatment and rehabilitation of those affected by tobacco.

It's time for Bangladesh to take a bold action against the tobacco epidemic that threatens our youth

However, tax increases alone are not enough. A multi-faceted strategy is needed to control tobacco. This includes:

  • Repeal sections 4 and 7 of the current law: This would eliminate designated smoking areas (DSAs) in all public places and public transport. Currently, the law allows for DSAs in certain settings like hotels and restaurants above a specific size.

  • Prohibit the display of tobacco products at points of sale: Point-of-sale displays act as a form of advertising, particularly influencing young people. Removing them reduces the visibility and appeal of tobacco products.

  • Completely ban all forms of corporate social responsibility (CSR) programs by tobacco companies: Tobacco companies would be prohibited from engaging in any CSR activities, such as sponsoring events, donating to charities, or running public health campaigns.

  • Completely ban all emerging tobacco products, including e-cigarettes and heated tobacco products: E-cigarettes and heated tobacco products still contain nicotine and other harmful substances. They can lead to addiction, particularly among young people, and serve as a gateway to traditional tobacco use. A complete ban prevents their normalization and protects public health.

  • Increase the size of pictorial health warnings on tobacco product packaging from 50% to 90%: Larger, more prominent warnings are more effective in discouraging tobacco use. They increased awareness of the health risks and countered the appeal of tobacco packaging.

  • Prohibit the sale of loose sticks of cigarettes/bidis, unpackaged, and loose smokeless tobacco products: Selling loose sticks makes tobacco more affordable and accessible, particularly to young people and low-income individuals. This ban would help reduce consumption and protect vulnerable groups.

It's time for Bangladesh to take a bold action against the tobacco epidemic that threatens our youth. We urge the government to implement a comprehensive strategy that includes significant tax increases on all tobacco products, coupled with stronger regulations and enforcement. Let's protect our future generations from the grip of tobacco and ensure a healthier Bangladesh for all.

Dr Nizam Uddin Ahmed is Executive Director: Shastho Shurokkha Foundation and Chairman of Gavi CSOs Steering Committee and Senior Public Health Expert.

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