Tobacco consumption in Bangladesh continues to be a significant public health concern, as highlighted by the latest data from the Global Adult Tobacco Survey (GATS) in 2017. Shockingly, the average monthly expenditure on cigarettes stands at 1,077.7 Taka, while the average monthly expenditure on bidis is 341.9 Taka. With a total of 37.8 million adults currently using tobacco in various forms and around 1,61,000 people dying due to tobacco consumption, the urgency to address this issue has never been more pressing.
The statistics paint a grave picture: 15 million adults use cigarettes and 5.3 million use bidis. But there’s hope. If we set our sights on making Bangladesh tobacco-free by 2040, aiming to reduce the tobacco use rate to below 5%, and 95% of these tobacco users (approximately 19.0 million individuals who smoke cigarettes and bidis) quit smoking, we could accumulate around 15.41 billion Taka monthly from cigarette users and 1.71 billion Taka from bidi users.
When considering the economic implications, the potential of this shift is even more apparent. The average GDP contribution of a person in Bangladesh in a year is estimated to be around $2,674 (nominal). This means that the total GDP of Bangladesh, which stands at US$ 454 Billion in FY 2022-23, is divided by the total population, which is 169,828,921. Tobacco use caused nearly 161,000 deaths in Bangladesh. If we can reduce one-third (approximately 53,670) of deaths that occur due to tobacco consumption, the GDP by that portion would witness an increase of approximately $143.45 million.
The Smoking and Tobacco Products Usage (Control) Act, enacted in 2005, was a vital step in regulating tobacco products, advertising, and smoking in public places. Bangladesh took the lead in South Asia by imposing a Health Development Surcharge (HDS) – a 1% tax levied on all tobacco products – in 2015. It was intended to generate revenue to support tobacco control and non-communicable disease (NCD) prevention programs.
The HDS revenue has been increasing steadily in recent years, as the government has taken steps to increase tobacco taxes. In 2016, the HDS revenue was BDT 198 Cr. By 2021, it had increased to BDT 311 Cr. However, the amount of money collected from HDS has not been publicly disclosed since then.
The HDS has been praised by tobacco control advocates as an essential step towards tobacco control sustainability in Bangladesh. However, there have also been some concerns about the implementation of the HDS. One concern is that the money collected through the HDS has not been accessible to the Ministry of Health (MOH), which is responsible for tobacco control programs.
While the increase in HDS revenue is a positive sign for tobacco control in Bangladesh, it is not enough. There is still much more that needs to be done to reduce tobacco use. The government should continue to raise tobacco taxes specially implementation of specific taxation system on all tobacco product and implement other tobacco control measures, such as comprehensive smoke-free laws and bans on tobacco advertising, promotion, and sponsorship.
The data on the amount of money collected from HDS in Bangladesh is important because it can be used to track the effectiveness of the HDS as a tobacco control measure. The data can also be used to estimate the amount of revenue that is generated from HDS, which can be used to support tobacco control programs.
In summary, the revenue from tobacco has been increasing steadily over the past 6 years in Bangladesh, indicating a growing concern. The HDS has been praised as a step in the right direction, but without transparent and effective implementation, its potential is compromised. More stringent measures need to be taken to combat tobacco use effectively. The future of Bangladesh’s health depends on it.
Author: Research associate, Bangladesh Network for Tobacco Tax Policy (BNTTP).
