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[🇧🇩] Tobacco Industry in Bangladesh

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Short Summary: Prospects and Challenges of Tobacco Industry in Bangladesh.

Saif

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Tobacco cultivation surge sparks alarm

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Tobacco cultivation in the Rangpur region has increased significantly this year, with 19,250 hectares of land now under cultivation, up from 13,349 hectares last year, according to the Department of Agricultural Extension.

The department has expressed concern over this rise, noting that the cultivation area stood at 10,820 hectares in 2023.

Officials report that 60 percent of the region's tobacco is produced in Lalmonirhat, followed by 20 percent in Rangpur, 15 percent in Nilphamari, and 5 percent in Gaibandha.

Farmers, meanwhile, cite the high profitability of tobacco as a reason for its increased cultivation.

Sejab Ali, a farmer from Tiparbazar village in Aditmari, expanded his tobacco farming from four bighas last year to seven this year, earning Tk 2,77,200 from 33 maunds of tobacco in 2024 while spending Tk 86,000.

Abdul Quader, a veteran farmer from Mominpur village in Rangpur Sadar, has been cultivating tobacco for 39 years and noted a sharp rise in its production this year. He doubled his cultivation from five to 10 bighas, attributing the trend to higher market prices and the support provided by tobacco companies, including seeds, fertilisers, pesticides, and interest-free loans.

Omar Faruk, agriculture officer of Aditmari upazila, criticised tobacco companies for encouraging cultivation, which he said depletes soil fertility and hampers food production.

Obaidur Rahman Mandal, additional director of DAE in Rangpur, said tobacco cultivation, though lucrative for farmers, harms the soil, environment, and human health.

He said the DAE cannot take firm measures as tobacco cultivation has not been officially banned, adding that its unchecked growth poses a severe risk to agriculture.Lalmonirhat Deputy Commissioner HM Raqib Hayder said measures to curb tobacco cultivation would be taken in consultation with the agriculture department, and the matter has been reported to higher authorities.​
 

Taxation is not only method to stop tobacco consumption: Farida
FE Online Desk
Published :
Jan 21, 2025 18:25
Updated :
Jan 21, 2025 19:17

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Fisheries and Livestock Adviser Farida Akhter said that taxation is one of the most effective methods to stop tobacco consumption but it is not the only method.

The adviser said this while addressing a seminar on tobacco organised by the non-government think tank Unnayan Shamannay at Bishwo Shahitto Kendro, BSS reports.

Referring to a research, Farida Akhter said that 35.3 per cent people in the country use tobacco, which means that one in every three persons is a smoker. This picture is both terrifying and worrying, she added.

She said that although the target of SDG 3.9 calls for a significant reduction in tobacco use to protect public health, the Tobacco Control Act needs to be amended and implemented immediately to make it effective by 2030.

The adviser said that the number of tobacco users will decrease if the National Board of Revenue imposes higher taxes. Tobacco companies are threatening to reduce revenue, she said, adding that but many studies have observed that tobacco use will decrease slightly but revenue will increase.

Moderated by Zahid Rahman, Senior Program Coordinator of Development Coordination, the event was attended by CTFK-Bangladesh Lead Policy Advisor Md. Mostafizur Rahman, BIDS Research Director Dr. S. M. Zulfikar Ali, and Anti-Discrimination Student Movement spokesperson Umama Fatema.​
 

NBR to conduct drive against illegal tobacco trading
Taufiq Hossain Mobin 09 February, 2025, 23:27

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This file photo shows the National Board of Revenue at Sher-e-Bangla Nagar in the capital Dhaka. | New Age photo

The National Board of Revenue has decided to conduct drive against illegal tobacco trading in the market to secure revenue collection from the sector.

NBR issued a directive in this regard on February 6.

The revenue authority instructed all VAT commissionerates to set up a six-member committee in each circle to improve tax collection from tobacco industry and crack down on illegal trade.

The newly formed committees will conduct daily inspections of markets, warehouses and other high-risk locations.

They will also collect intelligence report on illegal tobacco trading and take appropriate actions as necessary.

Each committee will be headed by the circle’s revenue officer as convener, while three members from law enforcement agencies would help tax officials in performing their job.

The NBR gave such instruction using the power stated in Value Added Tax and Supplementary Duty Act, 2012.

Circle officers will supervise the committees, while LTU VAT commissioners will provide consultations when required.

‘Recent media reports have highlighted the widespread availability of illegal tobacco products in both urban and rural areas, raising concerns about the government losing huge revenue and about the revenue authority’s ability to control the issue,’ the directive read.

Other members will include a representative from tobacco companies and an assistant revenue officer, who will serve as member secretary.

To ensure accountability, divisional officers will submit monthly reports on the effectiveness of these enforcement activities. The NBR also announced plans to recognise top-performing officers with a ‘Certificate of Recognition’ as part of the initiative.

The directive highlighted the importance of stricter monitoring due to rising concerns over illegal tobacco sales, which are causing significant revenue losses for the government.

Tobacco products, including cigarettes and bidis, contribute about 25 per cent of the country’s total VAT revenue, according to the directive.

By forming these bodies, the revenue board aims to tighten control over illegal tobacco sales and secure the stream of tax revenue.

A recent study, conducted by Bureau of Economic Research of the Dhaka University and the Bangladesh Network for Tobacco Tax Policy, said that the tobacco companies in Bangladesh evaded government revenue of Tk 3,784 crore during the 2023-24 fiscal by selling cigarettes at prices higher than the maximum retail price printed on the packets.

The study found that cigarette prices in the market exceeded the MRP by 8 per cent to 21 per cent during the 2023-24 fiscal.

Since government tax revenue is calculated based on the printed MRP, this price inflation benefits tobacco companies while depriving the exchequer of significant revenue.​
 

TOBACCO CONTROL REFORM: Legal challenges and progress
Syed Akram Hossain 27 February, 2025, 00:00

THE rate of tobacco use in Bangladesh is alarmingly high, posing significant challenges to public health, the economy and the environment. According to the World Health Organisation, tobacco-related diseases are responsible for eight million deaths annually, with 1.3 million of these attributed to passive smoking. In Bangladesh, 35.3 per cent of adults use tobacco, with 18 per cent smoking and 20.6 per cent consuming smokeless tobacco products, as reported in the Global Adult Tobacco Survey, 2017. Meanwhile, 6.9 per cent of students aged 13 to 15 use tobacco, according to the Global Youth Tobacco Survey, 2013, casting a long shadow over the health of future generations. The Tobacco Atlas, 2022, further highlights that the economic cost of tobacco in Bangladesh stands at Tk42,435.68 crore per year, surpassing the combined costs of healthcare and lost productivity.

Environmental Crisis

BEYOND its health implications, tobacco farming inflicts severe environmental damage. Each year, 600 million trees are felled to dry tobacco leaves, accelerating deforestation and increasing carbon emissions. The production of a single cigarette generates 14 grams of carbon dioxide, exacerbating climate change. Water bodies such as the River Halda suffer from chemical waste discharged by tobacco farming, endangering fish breeding grounds and biodiversity. Moreover, tobacco farming demands five times more water than rice cultivation, posing a critical risk to water-scarce countries like Bangladesh in an era of escalating climate challenges.

Risks to farmers, children

THE dangers of tobacco cultivation extend to those directly involved in the industry. Studies indicate that tobacco farmers absorb nicotine through their skin, equivalent to smoking 50 cigarettes daily. The use of toxic pesticides further contaminates soil and water sources, seeping into the food chain and creating long-term health hazards. Alarmingly, children are among the victims of this exploitative industry, with many engaged in hazardous labour on tobacco farms, depriving them of their childhood and educational opportunities. UNICEF reports that 7 per cent of children in Bangladesh are directly or indirectly involved in the tobacco industry, a clear violation of child labour laws and fundamental rights.

Targeting youth

TOBACCO companies persistently flout regulations, employing insidious marketing strategies to lure the younger generation. Approximately 75 per cent of shops near schools and colleges in Dhaka prominently display tobacco products, enticing impressionable children. E-cigarettes and heated tobacco products are aggressively marketed with enticing flavours such as chocolate, fruit, and mint, further appealing to young consumers. Moreover, social media influencers and celebrity endorsements help promote tobacco as a fashionable lifestyle choice. According to WHO, 20 per cent of young people in Bangladesh have already been exposed to tobacco advertising, increasing the likelihood of future consumption and addiction.

Legal obstacles

A MAJOR impediment to the effective implementation of the Tobacco Control Act, 2005, and its subsequent amendments is the financial entanglement between the government and the tobacco industry. Notably, state-owned entities such as BDDBL (0.34 per cent), ICB (5.20 per cent), and General Insurance (2.83 per cent) hold shares in British American Tobacco. Additionally, the involvement of high-ranking government officials or their relatives on the company’s board creates a glaring conflict of interest, weakening regulatory enforcement and compromising public health priorities.

Proposals for legal amendments

SMOKING should be prohibited in all public places, restaurants, and workplaces, with increased penalties for violations. A complete ban on direct and indirect tobacco advertising and brand logos should be enforced, ensuring that health warnings cover at least 90 per cent of packaging. The sale of tobacco products must be prohibited within 100 metres of educational institutions, healthcare facilities and places of worship. The production and sale of flavoured tobacco products, including menthol, cherry and chocolate varieties, should be ceased. Furthermore, a maximum fine of Tk20,000 should be imposed for violations, with penalties doubled for repeat offences.

Implementing sin tax

A CRUCIAL step in reducing tobacco consumption is the introduction of higher taxation. Increasing taxes on tobacco products would not only deter consumption, particularly among youth and low-income groups, but also generate additional revenue for public health initiatives. The success of sin taxes in the Philippines, where tobacco use declined by 25 per cent following tax increases, underscores the effectiveness of this approach.

Path forward

TACKLING tobacco consumption in Bangladesh requires unwavering political commitment, rigorous law enforcement and systemic reforms to eliminate conflicts of interest. Government officials must sever financial ties with the tobacco industry to strengthen accountability and policy integrity. Key measures such as increased taxation, stringent advertising restrictions, and comprehensive awareness campaigns targeting young people must be expedited. Lessons can be drawn from countries such as Australia and New Zealand, where robust policies and social movements have successfully reduced tobacco consumption to below 20 per cent.

To meet the Sustainable Development Goals by 2030, a coordinated effort involving policymakers, the media, educators, healthcare professionals and young activists is essential. Only through decisive action can Bangladesh curb the devastating impact of tobacco and safeguard the health and well-being of its citizens for generations to come.

Dr Syed Akram Hossain is a member of Health Sector Reform Commission and coordinator of Square Cancer Center, Square Hospital.​
 

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