Smokers to pay more
Cigarette prices are set to go up as the finance minister today proposed some tax measures aimed at reducing the use of tobacco and maximising revenue collection from the sector.
“Considering the health-risk and harmful effects of tobacco products, we are committed to reduce the use of tobacco and maximize revenue collection from this sector and thus want to maintain compliance with global anti-smoking policy,” AMA Muhith said while unveiling the budget for 2015-2016 fiscal at the parliament.
For all latest news, follow The Daily Star's Google News channel. For a long time, it has been a tradition on part of the government to fix the price limit of cigarette for the sake of revenue collection though it does not go with the spirit of the market economy, he added.
“I propose to fix a minimum floor level for cigarette price and hence impose specific amount of Supplementary duty and VAT on the fixed price.”
The minister also proposed imposing fixed amount of supplementary duty and VAT for the additional amount after the floor price of cigarettes.
The following table shows the existing situation and the finance minister’s proposals in this regard:
|
(for 10 sticks) Tk. |
|
Tax rate |
|
(for 10 sticks) Tk. |
|
(SD rate) |
|
15.00-16.50 |
43% |
|
Lowest: Tk. 19.00 |
48% |
||
|
32.50-35.00 |
60% |
|
Low: Tk. 20.00-39.00 |
60% |
||
|
50.00-54.00 |
61% |
|
Medium: Tk. 40.00-69.00 |
61% |
||
|
90 and above |
61% |
|
High: Tk. 70 and above |
63% |
||
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