Tobacco Business in Bangladesh: Consequences vs. Taxes
|
B |
angladesh
is one of the largest tobacco consuming countries in the world, with over 46
million (43%) adults consuming cigarettes, bidis. Tobacco hampers both
consumer’s and thesurroundings’ health. Tobacco Company, retailers, consumers
and involved individuals are wellknown of its consequences. Whilst the Govt.
only focus on increasing and earning tax revenues. Can taxes recover the losses
caused by smoking?
Let’s
observe the overall situation:
·
Each year,
tobacco use kills 57,000 Bangladeshis.
·
A concern
source is youth tobacco consumer; nearly 7% of 13-15 year olds use tobacco
Products.
·
There are
about 1.2 million cases of lung cancer & diseases.
·
51 billion
takas was spent to treat diseases caused by smoking.
These are yearly info of the consequences of tobacco Consumption.
Economic experts suggest that if Govt. imposes excise tax of 34 takas per 10
cigarettes with existing tax, it would increase cigarette excise tax to 70% of
average retail. That brings additional tax revenues of 15 billion takas from
cigarettes and 7 billion takas from bidis. However, these taxes can not recover
the lossoccurred from tobacco. But the additional taxes can encourage -
·
Nearly 7
million adult smokers to quit;
·
Prevent almost 6 million premature deaths
caused by cigarette smoking;
·
Keep over 7 million young Bangladeshis from
starting cigarette smoking.
Though
the consequences can never be calculated by formulating some data analysis, it
gives anoverall idea of economic disaster and agitation.
Reference:
1.
Bulletin of WHO;
2. The Economics of Tobacco Taxation in
Bangladesh by BIDG.
Md Sadman Masrum
Session 2016-17
Department of Marketing
