Surcharge on tobacco products

Published:  01:55 AM, 09 August 2017

Over Tk 900cr lying idle for want of policy


Over Tk 900 crores, realized as surcharge from tobacco sector in last three financial years, have been lying idle as there is no policy in force. As a result, the money can't be used.  Health Ministry sources said, a draft of the policy in this regard is now at final stage. It will be possible to spend the money after the finalization of the policy.

The finalization of the draft of 'Health Development Surcharge Management Policy' prepared by the health ministry will enable the authorities concerned to spend the money collected as surcharges. The ministry sent letter to nine ministries including finance, agriculture and industries seeking opinions on it.

Public opinions were taken in this regard on December and the draft got approval in an inter-ministerial meeting on February. The policy is likely to put forward at the cabinet meeting this month for the finalization. At 1 per cent rate, over Tk 900 crore was realized as 'Health Development Surcharge' from the tobacco sector in the last FYs 2014-15, 2015-16 and 2016-17. Such surcharge system is in operation in 11 countries including Bangladesh in the world.

Experts said, the National Tobacco Control Cell under the Health Ministry can conduct a 'National Tobacco Control Program' that may implement different programs including health protection, tobacco control programs like research and campaign, keeping youths away from nicotine addiction and arranging alternative employment for the tobacco growers.

In the budget speech of 2014-15 financial year, Finance Minister Abul Mal Abdul Muhith said, "The money collected as surcharges from tobacco sector will be spent for the people affected by tobacco related diseases and their rehabilitation. But, the money can't be utilized anywhere due to lack of a specific policy. Consequently, the money has been lying idle day after day.

The government imposed 1 per cent 'Health Development Surcharge' on tobacco products in 2014-15 in face of demonstration against tobacco.  The National Board of Revenue (NBR) imposed 'Health Development Surcharge Recovery Rules' in 2014 and 'Health Development Surcharge (Recovery and Paid) Rules' in 2017, which came into effect from July 1.

Mir Nabin Ekram, Program Officer of National Tobacco Control Cell under Health and Family Welfare Ministry said, "A policy is needed on how the money collected as surcharge to be used. With this aim, the work to prepare a policy in this regard is going on. After  the finalization of the policy, it will be possible to get good outcome."

It is to be mentioned that, 'Health Development Surcharge' is one kind of tariff, imposed on production and import of products like tobacco and alcohol, which are harmful for public health. Surcharge is mainly imposed to earn revenue with an aim to reduce the use of tobacco as harmful product and meet up the medical costs of patients suffering from diseases caused due to consuming tobacco products. In different developed countries, the money collected as surcharge is used for treating the patients, conducting researches, campaign and creating alternative employment facility for the addicted people.

It is further mentioned that, tobacco companies are causing deaths of over one lakh people and disabilities to over 4 lakh every year. These are creating obstructions in almost all sectors including education and food security.  Experts think, if 'Health Development Surcharge' is collected properly and the collected fund is used in a proper way, the nation will soon get relief from the devastating 'tobacco epidemic'.








Latest News


More From Back Page

Go to Home Page »

Site Index The Asian Age