ZCZC
BSS-48
BUDGET-TOBACCO-COSTLIER
Tobacco products to be costlier
DHAKA, June 7, 2018 (BSS) – The use of tobacco products, including
cigarette, bidi, zarda and gul, are going to be costlier from the next fiscal
(fiscal 2018-19) as the National Board of Revenue (NBR) is shifting to a
uniform tax rate irrespective of prices.
“Maintaining harmony with the anti-smoking state policies of the states
around the world, decreasing use of tobacco, reducing health risk and
increasing revenue collection are the big challenges of this sector,” Finance
Minister Abul Maal Abdul Muhith said while placing the national budget for
fiscal 2018-19 at Jatiya Sangsad today.
Aiming to face this challenge, he said, the NBR reduces price levels for
shifting to a uniform tax rate irrespective of prices and the government is
gradually moving to this goal.
Muhith proposed fixing the price of the low segment for every 10 sticks of
cigarette at Taka 32 and above while increasing the supplementary duty rate
to 55 percent.
He also proposed increasing the price of the medium segment for every 10
sticks of cigarette at Taka 48 and the supplementary duty rate to 65 percent.
At the same time, the Finance Minister proposed increasing the price of
the high segment for every 10 sticks of cigarette at Taka 75 and Taka 101 and
keeping the supplementary duty rate to existing 65 percent. “Our goal is to
gradually fix the price and supplementary duty rate in two slabs,” he said.
Observing that bidi is more harmful than cigarette, Muhith said last year
the government decided to abolish bidi production within 2/3 years.
Reiterating the Prime Minister’s decision to make Bangladesh a tobacco-
free country by 2041, he said in line with this commitment, the government
has decided to abolish bidi production by 2030 and cigarette production by
2040.
“So, we will not increase the price of bidi this year. However, price of
20 sticks of filter bidi will be fixed at Taka 15 from existing Taka 12,” he
said.
To reduce the consumption of smokeless tobacco products like zarda and
gul, Muhith recommended fixing the price of Zarda and Gul based on its
weight.
“Here, I am proposing to fix price of 10 grams of Zarda and Gul at Taka
25 for next year,” he added.
BSS/ASG/GM/MRI/1905 hrs