Dhaka: Urging the government to impose high excise tax on tobacco products in the coming fiscal 2015-16, eminent economist Professor Abul Barkat has said Bangladesh counts a socioeconomic loss of at least Tk 16,600 crore each year due to tobacco use.

‘About 76,100 people are being killed each year in the country due to the use of tobacco products. The measurable socioeconomic loss of tobacco use is minimum Tk 16,632 crore a year as per 2014-15 fiscal,’ he told a press conference in the capital on Thursday.

Human Development Research Centre (HDRC), Progga, Anti Tobacco Media Alliance (ATMA) and Campaign for Tobacco-Free Kids (CTFK) jointly organised the pre-budget press conference at Dhaka Reporters Union (DRU).

Reading out a written statement, Prof Barkat said the relation between price and consumption of tobacco products is quite opposite. If the price of tobacco product declines, its consumption goes up and if the price of tobacco product increases, its consumption reduces.

‘The most effective tactic in reducing consumption of tobacco is the imposition of high tax on tobacco products to increase its price,’ he added.

The economist said imposition of high tax on tobacco products and an effective tax management not only help address the tobacco-induced problems but also reduce expenditures of health sector. ‘The government can also collect more revenue by imposing high tax on tobacco products.’

He suggested imposing specific excise tax on cigarettes cancelling different price labs of cigarettes as there are now four price labs of cigarettes in the country.

As tax on bidi is very low in the country, Professor Barkat also suggested imposing a specific tax of Tk 10 on a 25-trick bidi packet from the 2015-16 fiscal and it should be increased to Tk 15 from fiscal 2016-17 and Tk 25 from fiscal 2017-18.

He recommended introducing specific excise tax on smokeless tobacco products like Jarda and gul, and asked the authorities concerned to impose a tax of Tk 150 on a 100 gram packet of smokeless tobacco.

Prof Barkat stressed the need for increasing health surcharge to 2 percent on the sale of tobacco products from existing one percent.