Bangladesh improves in tobacco tax index

Bangladesh has significantly improved its score on cigarette taxation policy, from 0.87 in 2014 to 2.38 in 2018, according to a new global index. 

However, improvements are needed in the tax structure and prices of cigarettes, the country's anti-tobacco group Knowledge for Progress (Progga) said in a release yesterday.

Bangladesh got an overall score of 2.38 out of 5 possible points, which is slightly higher than the global average (2.07), says the first edition of "Cigarette Tax Scorecard", released by Tobacconomics, a US-based research initiative.

Australia and New Zealand were jointly top in the index, with a score of 4.63.

The index assessed the performance of cigarette tax policies in over 170 countries based on international best practices using data from World Health Organization from 2014-2018.

Nearly half the countries scored less than two. There has been little improvement between 2014 and 2018; the global average score rose only slightly, from 1.85 in 2014 to 2.07 in 2018.

The current cigarette prices and tax structure in Bangladesh are far below the standard of international best practices, Progga said.

"The complex tiered cigarette tax structure in Bangladesh has significantly contributed to a reduced score for the country in the scorecard," said Qazi Kholiquzzaman Ahmad, eminent economist and convener of National Anti-Tobacco Platform.

Bangladesh must reduce the number of tiers for cigarette taxation, introduce specific excise taxes and significantly increase its existing excise taxes on all tobacco products to save lives and raise much needed revenue, he said.

Increased taxes on tobacco products will reduce their consumption and generate much needed revenue to bear coronavirus related medical expenses and implement government stimulus packages, said Mahfuz Kabir, research director of Bangladesh Institute of International and Strategic Studies.

In Bangladesh, 37.8 million adults use tobacco, and 41 million people fall victim to second-hand smoke in their own homes, said the release.

About 1.26 lakh people die every year in Bangladesh from tobacco use, and the economic burden from tobacco use amounted to Tk 30,500 crore in 2017-18, said Progga.

Tobacco taxes are the single most effective way to minimise negative health and economic impacts of tobacco consumption, it said.

The "Cigarette Tax Scorecard" has been created by University of Illinois Chicago's Institute for Health Research and Policy, where Tobacconomics is based in.

"The Scorecard shows considerable untapped potential for cigarette tax increases to raise revenue for a Covid-19 recovery and importantly, prevent premature deaths and promote a healthy and productive workforce," said Tobacconomics director and lead author of the scorecard Frank J Chaloupka.