Anti-Tobacco Media Alliance (ATMA) on Sunday urged the National Board of Revenue (NBR) to ensure effective tobacco taxation noting that the current structure is a complicated one with scope for tax evasion.
ATMA representatives gave the view at a pre-budget meeting with NBR chairman Md Mosharraf Hossain Bhuiyan, according to a statement.
The anti-tobacco platform also placed a number of proposals with a view to ensuring effective tobacco taxation.
For cigarette, the ATMA proposed bringing the number of price slabs down to two (low and high), eliminating the differential tax between local and multi-national corporation (MNC) brands in the lowest tax tier, setting the minimum price for the low tier at no less than Tk 50 per 10 sticks and raise the ad valorem tax to 60 per cent, setting the minimum price for the high tier (high and premium) at minimum Tk 100 per 10 sticks and keep the ad valorem tax on the high tier at the existing 65 per cent, and introducing a specific tax of Tk 5 per 10 sticks for all cigarettes at the same time.
In case of bidis, the platform proposed elimination of distinction between filter and non-filter bidis, setting the minimum price at Tk 30 per pack of 25 sticks, raising the ad valorem tax to 45 per cent of price and add a specific tax of Tk six per pack of 25 sticks.
On the smokeless tobacco, it proposed changing the tax base to the retail prices from ex-factory price, setting the minimum retail price at TK 50 per 20 grams, raising the ad valorem tax to 45 per cent of price and add a specific tax of Tk 10 per 20 grams.
At the meeting, the NBR Chair said, 'As tobacco is harmful for health, you have to pay taxes if you want to consume it.'
About the possible tobacco tax in the upcoming budget, he said, 'Cigarettes, bidis and other tobacco products will see a reasonable rise on taxes in the upcoming budget.'
ATMA representatives claimed if the proposals are accepted, it will encourage nearly 6.42 million current adult smokers to quit and reduce the prevalence of cigarette smoking by 2.7 per cent and bidi smoking by 2.9 per cent, and will help the government to collect TK 75 billion to Tk 100 billion (or 0.4 per cent of GDP) as additional tax revenue from the tobacco sector.
ATMA representatives Shahnaz Munni, Mortuza Haider Liton, Nadira Kiron and Doulot Akter Mala, among others, were present, reports UNB.