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  • World No Tobacco Day

    World No Tobacco Day

    The World No Tobacco Day (WNTD) observe 31 May 2021 around the globe. This year the theme of World No Tobacco Day is Commit to quit. In Bangladesh, the theme for World No Tobacco Day 2021 also resembles the global one: Asun Amra Protigga Kori, Jibon Bachate Tamak Chari. The benefits of quitting are many. Abstaining from tobacco use for a whole year decreases the risk of coronary heart disease is about half that of a smoker. Within 10 years of quitting, the risk of lung cancer falls to about half that of a smoker. Compared to those who continued tobacco use, those who quit at about 30-40 years of age, gain almost 9-10 years of life expectancy.

    Tobacco is one of the major contributing factors to lung and cardiovascular diseases. Tobacco users are two to four times more likely to get heart disease (heart attack and stroke) than nonsmokers. Tobacco, responsible for 25 percent of all cancer deaths globally, is linked to at least 20 cancer types.  Particularly, lung cancer risk is around 25 times higher in tobacco users compared with those who have never smoked. About 80% of all COPD (chronic obstructive pulmonary disease) is caused by cigarette smoking and smokers are 13 times more likely to die from COPD than non-smokers. Smokers face a 40 – 50 percent higher risk of developing severe disease and death from COVID-19, says WHO.

    Tobacco also causes irreparable damage to one’s family and surroundings. As per the 2017 Global Adult Tobacco Survey (GATS) of World Health organization (WHO), currently 38.4 million people in Bangladesh face secondhand smoking in work, transport and other public places on a regular basis. About 40.8 million (39%) Bangladeshis are exposed to passive smoking at home, with the majority being women. A recent study conducted among school children of Dhaka has found out that 95 percent of school-going children have higher nicotine in their saliva samples which is undoubtedly a result of passive smoking.

    The use of tobacco causes around 126,000 deaths in Bangladesh a year. The financial loss (due to medical expenditure and loss of productivity) incurred per year due to tobacco use exceeds BDT 30,560 crore. A matter of particular concern is that currently the lowest income people have a much higher rate (48%) to use tobacco than the highest earning class (24%). Between 2009 and 2017, the average monthly expenditure for bidi has increased by 50% for each individual smoker. Currently, a cigarette smoker spends on average BDT 1077.7 per month for cigarettes. On the contrary, the average monthly expenditure for education and health of a household is only BDT 835.7 and 700 respectively (Household Income and Expenditure Survey 2016). If the money spent on tobacco could be channeled into spending for education, health or the fight against human poverty, the economic condition of families could be radically improved.

    On the occasion of the World No Tobacco Day 2021, ABM Zubair, Executive Director of PROGGA said, the poor demographic is predominantly more price sensitive. Once prices of tobacco products are increased, it decreases the use of tobacco, tobacco-related diseases and deaths and other losses. So, increasing taxes on tobacco is a pro-poor measure.

    Most importantly, to achieve a tobacco-free Bangladesh by 2040, cigarettes and other tobacco products need to be brought out of the purchasing capacity of the masses through the imposition of specific taxes. In addition, measures such as removing the provision of “designated smoking area”, banning smoking in all public places, work spaces, and public transport, banning the display of tobacco products at points of sale, banning ‘corporate social responsibility’ activities of tobacco companies, banning the sale of single sticks and unpackaged smokeless tobacco, banning the sale and import of e-cigarettes and heated tobacco products, and allowing stricter rules on packaging including increases to the size of graphic health warnings- should be adopted  and implemented through an amendment of tobacco control law.

  • Increase Prices of Cigarettes and other Tobacco Products through Specific Taxation

    Increase Prices of Cigarettes and other Tobacco Products through Specific Taxation

    Increasing the prices of tobacco products through effective taxation discourages the youth to start tobacco use as well as encourages the existing users, particularly those financially vulnerable, to quit. To achieve a tobacco-free Bangladesh, the prices of cigarettes and other tobacco products should be increased through specific taxation, bringing these products beyond the purchasing power of the masses.

    MPs, economists, journalists, and public health experts expressed such views today during a virtual roundtable, jointly organized by PROGGA (Knowledge for Progress) and Anti-Tobacco Media Alliance (ATMA), titled ‘Tobacco Tax and Price Measures for a Tobacco-Free Bangladesh: Reality and the Way Forward. As PROGGA presented its budget proposals for FY 2021-22′ during the event, its estimation says implementation of such proposal would encourage 1.1 million adult smokers to quit, prevent premature deaths of 390,000 existing smokers and 400,000 youths. The proposals regarding supplementary duty, health development surcharge, and VAT on cigarettes would also earn the government an additional BDT 3400 crore in revenues.

    During the roundtable, Saber Hossain Chowdhury MP, the Chairman of the Parliamentary Committee on Environment, Forestry and Climate Change, said, “Each year before the budget, we raise our demands to increase tobacco taxes. Unfortunately, the national budget never reflects our demands. Our constitution has declared that this republic belongs to its people. The constitution has also bestowed the sacred responsibility of safeguarding public health on the State. So, our Honorable Prime Minister voiced her vision for a tobacco-free Bangladesh considering all such aspects. Those who are putting obstacles in the way need to be identified.” 

    Eminent economist and the convener of the National Anti-Tobacco Platform, Dr. Qazi Kholiquzzaman Ahmad said, “It is quite frustrating for us to find NBR saying the increase in tobacco taxes would harm the poor. The reality is quite the contrary. An increase in tobacco taxes benefits the poor the most.” In addition to supporting the budget proposals, Mr. Kholiquzzaman also called for the reinstatement of export duty on tobacco. Professor Dr. A A M S Arefin Siddique, Chairman of Bangladesh Sangbad Sangstha (BSS) and former Vice-Chancellor of Dhaka University, said, I hope those involved in the formulation of the national budget would incorporate at least some of these demands. He also focused on including lessons on the detrimental effects of tobacco in the national curriculum and other co-curricular activities.

    Additional Director-General of Directorate General of Health Services (DGHS) Prof. Dr. Meerjady Sabrina Flora opined that reducing the affordability and use of cigarettes through tax increases allows the people, particularly the poor, to spend more on nutrition and other necessities. She emphasized that adopting a coordinated plan regarding tobacco control would push for increasing taxes, raising awareness and implementing the existing law.

    Dr. Nasir Uddin Ahmed, former Chairman of National Board of Revenue (NBR), said, One of the major impediments in realizing such proposals in the national budget is the government’s investment in British American Tobacco Bangladesh (BATB) as well as the tobacco industry’s influence on NBR. He urged the Finance Minister to increase the prices of tobacco products in the upcoming budget and also to divest the government’s involvement in a tobacco company. Prominent Journalist and Editor-in-Chief of TV Today Mr. Monjurul Ahsan Bulbul said, “Materializing a commitment made by the Honorable PM requires additional effort from those in policymaking level. Unfortunately, we cannot find any such effort in this case. We must be sincere in this regard.”

    Abdul Quayum, Associate Editor of the Daily Prothom Alo, said, “Use of bidi and cigarettes causes diseases and thus increases medical expenses which, in turn, makes the poor even poorer. We need more campaigns to raise awareness regarding such devastating consequences.” Dr. Syed Mahfuzul Haque,

    National Professional Officer, World Health Organization (WHO) said, “We want to raise taxes on tobacco products so that it reduces the affordability of these products among the poor demographic and also discourages the youth to start its use.” He also told that due to the inelastic nature of tobacco demand, it would also increase government revenue.

    The Research Director of Bangladesh Institute of International and Strategic Studies (BIISS), Dr. Mahfuz Kabir said, the users of low-tier cigarettes constitute around 70 percent of total smokers. So, if we can increase the price of this tier through specific taxation and raise it closer to the medium-tier, it would not only reduce use but also increase government revenue manifold.

    Md. Mostafizur Rahman, Lead Policy Advisor for Campaign for Tobacco-Free Kids (CTFK), Bangladesh said, once the prices of tobacco products are increased, the use of these items among the poor decreases. He urged the Ministry of Health and Family Welfare (MoHFW) to play a more pro-active role in tobacco taxation.

    The event was hosted by Nadira Kiron, Co-convener, ATMA. The budget proposals were presented by Md. Hasan Shahriar, Project Head, Tobacco Control, PROGGA. Among those present were also Mortuza Haider Liton, Convener, ATMA, ABM Zubair, Executive Director, PROGGA and representatives of anti-tobacco organizations and media outlets.

    To raise tobacco taxes and prices, the following proposals for upcoming budget for FY 2021-22 were presented during the press conference:

    Budget Proposals:

    • Introduce a tiered specific excise (supplementary duty -SD) with uniform tax burden (SD share of 65% of final retail price) across all cigarette brands
    • In the low-tier, the retail price should be set at 50 for 10 sticks, followed by BDT 32.50 as specific supplementary duty (SD).
    • In the medium-tier, set the retail price at BDT 70 for 10 sticks and BDT 45.50 should be imposed as specific supplementary duty (SD).
    • In the high-tier, the retail price should be set at 110for 10 sticks, followed by BDT 71.50 as specific supplementary duty (SD).
    • In the premium-tier, set the retail price at BDT 140 for 10 sticks and BDT 91 should be imposed as specific supplementary duty (SD).
    • Reduce price tiers from four to two in the medium-term (2021-22 to 2025-26) by reducing the gaps in final prices and tax rates between cigarettes brands
    • For 25 non-filtered bidi sticks, the retail price should be BDT 25, followed by a specific supplementary duty of BDT 11.25. The price for 20 filtered sticks should be BDT 20, which will be followed by a specific supplementary duty of BDT 9. As a result of such measures, in both filtered and non-filtered bidis, the specific supplementary duty will be 45 percent of final retail prices.
    • For SLT products, the price per 10-gram jarda and gul should be BDT 45 and 25 respectively. A specific supplementary duty of BDT 27 should be imposed on per 10-gram jarda. For gul, the specific supplementary duty should be BDT 15. As a result of such measures, in both jarda and gul, the specific supplementary duty will be 60 percent of final retail prices.
    • Retain the existing 15% Value Added Tax (VAT) and 1% Heath Development Surcharge on all tobacco products.

    Implementation of the above-mentioned proposals for tax and price hike of tobacco products will encourage 1.1 million people to quit smoking, prevent premature deaths of 390,000 current adults and 400,000 current youth, and earn BDT 3400 crore as additional revenue from the supplementary duty, health development surcharge and VAT imposed on cigarettes. At the same time, price hikes of bidi, jarda and gul would also discourage the use among the poorest and most vulnerable demographic while contributing to govt. exchequer.

    The existing multi-tiered ad-valorem taxation has rendered cigarettes quite cheap and affordable in Bangladesh. Following a price hike, consumers conveniently switch to cheaper brands instead of quitting. According to the Global Adult Tobacco Survey (GATS), 2017, between 2009 and 2017, there has been a 1.5 million increase in the number of cigarette users. The numbers reveal that the existing tobacco tax structure has not been contributing to make Bangladesh a tobacco-free country by 2040, as envisioned by the Honorable Prime Minister.

    With the ongoing second wave of the COVID 19 pandemic, the health sector and overall economy of the country are going through precarious conditions. If tobacco use goes unchecked during such a period of vulnerability, it would put an additional risk for public health. According to World Health Organization (WHO), smokers are more likely to become severely ill when infected with covid-19. This makes the existing tobacco users, around 40 million in number, extremely vulnerable to severe COVID 19 infection. In Bangladesh, tobacco use claims 126,000 lives prematurely each year.

    In a 2019 study titled “Economic Cost of Tobacco Use in Bangladesh: A Health Cost Approach”, it was revealed that in 2017-18, the economic cost (medical expenses and loss of productivity) of tobacco use stood at BDT 30,560 crore while revenues from tobacco sector in 2017-18 FY was only BDT 22,810 crore. Raising the prices of tobacco products would discourage the youth from starting use and getting addicted while encouraging the existing users belonging to the poor demographic to quit.

    Source: PROGGA Knowledge for Progress

  • Finalization of National Tobacco Control Policy under Threat: PROGGA

    Finalization of National Tobacco Control Policy under Threat: PROGGA

    The cigarette manufacturers’ organization Bangladesh Cigarette Manufacturers Association (BCMA) has already started a strong lobbying campaign in the Ministry of Finance (MoF) to hinder the finalization process of the National Tobacco Control Policy (NTCP) 2019. On 15 September 2019, the organization sent a letter to the Finance Minister, with copies sent to Finance Secretary, Health Services Secretary and Chairman of National Revenue Board (NBR). In the letter, the association presented a series of unsubstantiated and fictitious explanations and ‘reasoning’ against the proven and highly effective tobacco control measures that the draft NTCP contains including the abolishment of government partnership in tobacco companies, the banning of foreign direct investment in the tobacco sector, banning of emerging tobacco products, increasing the size of Graphic Health Warning (GHW) on tobacco packaging, the introduction of plain packaging, increasing tobacco taxes and prices as well as introducing specific excise taxes.

    The sole purpose of BCMA’s strategy here is to bring forth the issue of tobacco revenue in order to intimidate and manipulate the MoF and eventually impair the finalization of NTCP. Previously, the tobacco companies launched a concerted media campaign to disrupt the inter-ministerial meeting on NTCP.

    BCMA in its letter mentioned Bangladesh as one of the countries with high tobacco taxes. The reality is quite the contrary as the price of cigarettes in Bangladesh is one of the cheapest in the world. Average price of cheapest cigarettes is more than twice in India than it is in Bangladesh. According to a 2016 World Health Organization (WHO) study, with the exception of Myanmar, Nepal and Indonesia, Bangladesh has the cheapest cigarette prices in the South and South-East Asian region.

    As a result, it is evident that there is no alternative to increasing this ‘cheapest’ price by introducing specific taxes on tobacco products. In the letter, BCMA could not but mention its favourite fear-mongering story that if, by sheer chance, the authority manages to increase the tobacco taxes substantially, it would result in widespread tax evasion and huge influx of illicit cigarettes, eventually causing the govt a massive revenue loss. The fact, as always, contradicts with BCMA’s claim.

    The report ‘A Global review of Country Experiences’, published in February 2019 by the World Bank, has found out that the increase in tobacco taxes has barely any relation with illicit trade of cigarettes and the percentage of illicit trade of tobacco in Bangladesh stands at merely 1.8 percent, the lowest in 27 countries. BCMA also claimed that the plain packaging strategy of tobacco control is ineffective in curbing the use of tobacco products. But in reality, till today, more than 16 countries in the world, including Australia, Canada, Belgium, Hungary, Turkey, Saudi Arabia, Thailand, Singapore, have introduced plain packaging in their tobacco control mechanism after realizing its impact.

    Even our neighboring countries, Srilanka and Nepal are also working on implementing plain packaging soon. In Plain Packaging, tobacco companies cannot attach any promotional messages in the packets of tobacco products. It also boosts the effectiveness of GHW on tobacco packs. Currently, GHW messages covers the lower 50 percent of all tobacco packs in Bangladesh whereas it is 90 percent in Nepal, 85 percent in India and Thailand, 80 percent in Sri Lanka. BCMA also emphasized on retaining the govt. shares on tobacco companies, claiming that it is important for revenue earning and minimizing public health risk. Again the reality is that the govt.’s shares in multinational tobacco companies and the presence of govt.

    Officials in the Directors’ Board give the companies an unprecedented opportunity to infiltrate the policymaking process and interfere in tobacco control strategies. BCMA also stood against the proposed policy of banning foreign direct investment in the tobacco industry claiming that such investment creates employment opportunities which is undoubtedly ridiculous laughable. The truth is that Bangladesh, a country where 49 percent of its population is youth, appears as a tantalizing market for expanding tobacco business. The country is currently going through the ‘Demographic Dividend’ stage as the working-age population is larger than its dependent population.

    However, the high prevalence of tobacco use can lead this generation to premature death and loss of productivity and vitality. BCMA’s letter also presented electronic cigarettes, vaping, heated (IQOS) tobacco products as ‘safe alternatives’ to traditional cigarettes and advised against banning these products. Tobacco companies produce and market these products targeting the youth and children.

    Due to innovative marketing and attractive designing of these products, it has already gained much popularity among school-going children and adolescents. The widespread prevalence of emerging tobacco products has already taken a deadly turn in Europe and the U.S. Bangladesh is yet to experience such widespread use of these items though the numbers are rising up. Thailand, Singapore and some 40 countries have already banned e-cig and vaping products. 

    It should be mentioned that tobacco claims more than 126,000 lives each year in Bangladesh and incurs a financial loss of more than Taka 30,560 cr. due to the illness and deaths, it causes. Realizing the extent of loss caused by tobacco use, the Hon.

    Prime Minister declared her vision of transforming Bangladesh into a tobacco-free country by 2040 and in 2016, the Ministry of Health and Family Welfare (MoHFW) started formulating National Tobacco Control Policy to reach the goal. As a party to the Framework Convention on Tobacco Control (FCTC) of WHO, Bangladesh is officially committed to safeguarding its tobacco control policies and measures from the vested interests of the tobacco industry.

    So the govt must stay clear of the influence and interference of tobacco companies and finalize and implement the National Tobacco Control Policy as soon as possible.

    Source: Press release from PROGGA (Received by E-Mail of bdenvironment.com)