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Tag: Bangladesh

  • High Leaf Prices Luring Growers in Bangladesh

    High Leaf Prices Luring Growers in Bangladesh

    Photo: Taco Tuinstra

    High prices have been attracting more growers to tobacco production in Bangladesh’s Lalmonirhat District despite reservations about the crop within the Department of Agriculture, reports The Financial Express.

    While tobacco is a notoriously laborious crop, farmers say its relatively low cost of production combined with the prevailing strong global demand make it financially more attractive than many other crops.

    According to the Department of Agricultural Extension (DAE), farmers have cultivated tobacco on nearly 10,000 hectares of land in five administrative regions of the Lalmonirhat District, but farmers’ sources claim the figure to be higher.

    “We are always motivating farmers not to cultivate tobacco,” said DAE Deputy Director Shaikhul Arefin. “But farmers are doing it only for good price. In recent years, maize farming has taken the place of tobacco farming in many areas. If fair prices can be ensured for other traditional crops, tobacco farming will reduce gradually.”

  • Bidi Workers Demand Better Conditions

    Bidi Workers Demand Better Conditions

    Photo: Brandy Brinson

    During a public meeting in Rangpur, Bangladesh, representatives of the Bidi Workers Federation presented several demands for improving their working conditions, reports the Daily Sun.

    Among other things, they want multinationals to increase the price of low-end cigarettes from BDT45 ($0.38) to BDT65 per pack and the government to close down illegal bidi factories. The bidi workers also demanded a halt to “the brokering” of BAT.

    Rangpur Mayor Mostafizar Rahman, who also spoke at the gathering, urged the government to protect the bidi industry from “the conspiracies of international companies.”

    He highlighted that approximately 2 million workers across the country earn their livelihood by working in bidi factories. Rahman advocated for wage increases, the withdrawal of duties on bidi products and for the bidi industry to be declared a cottage industry, a designation that would give companies operating in this sector access to low-interest loans and subsidies on raw materials, among other benefits.

    A recent survey revealed that many bidi workers in Bangladesh are dissatisfied with their working conditions.

  • Bangladesh Urged to Raise Cigarette Prices

    Bangladesh Urged to Raise Cigarette Prices

    Photo: Shahadat222

    Anti-tobacco organizations are urging Bangladesh to increase cigarette prices in fiscal year 2024–2025, reports The Business Post.

    Even as the prices of essential goods have soared, cigarette prices have remained comparatively stable in Bangladesh. Over the past five fiscal years, the price of low-tier cigarettes has increased by only BDT10 ($0.09), averaging an increase of BDT2 per year. Since 2019–2020, the price of such cigarettes has increased only once, by BDT1.

    Critics say the failure to adjust cigarette prices in line with inflation has made smoking more accessible and attractive to low-income groups. Low-tier cigarettes now account for 80 percent of the cigarette market.

    Experts have suggested raising the price of a 10-stick pack of low-tier cigarettes from BDT45 to BDT60. Aligning prices with inflation, they suggest, would increase government revenue by approximately BDT100 billion.

    “Low-income individuals are the most affected by malnutrition,” said Nasrin Sultana, a professor at the Institute of Health Economics at Dhaka University. “Increasing the price of low-tier cigarettes would reduce the number of smokers in this demographic. This would not only decrease health risks but also enhance revenue flow even amid economic downturns.”

  • Bidi Rollers Dissatisfied With Working Conditions

    Bidi Rollers Dissatisfied With Working Conditions

    Photo: Brandy Brinson

    Many bidi rollers in Bangladesh are dissatisfied with their conditions, reports the Daily Sun.

    Eighty-four percent of participants in a study conducted by the Development Organization of the Rural Poor (DORP) indicated they want to change employment due to health hazards of the tobacco.

    At the same time, 95 percent of the surveyed bidi workers expressed dissatisfaction with their wages while 61 percent complained about the workload.

    The report, titled Study Report on Bidi Workers’ Livelihood in Tangail District-2023, was presented by DORP Deputy Executive Director Mohammad Zobair Hasan at the Jatiya Press Club in the Dhaka.

    “We explored the common health hazards experienced by the participants and found that the majority of them suffered from cough and sneeze while 17.1 percent suffered from abdominal pain/swelling and chest pain or gas,” Zobair Hasan said.

    Despite the reported concerns, 95 percent of survey participants indicated that they incurred no healthcare expenses over the past 12 months.

  • BEA Proposes 70 Percent Tax

    BEA Proposes 70 Percent Tax

    Image: Dmitry Chulov

    The Bangladesh Economic Association (BEA) has proposed a 70 percent tax on all types of cigarettes and tobacco, according to The Business Post.

    By setting the tax as such, the BEA estimates that smoking will decrease by about 66 percent and the state will generate BDT17 billion ($154.89 million) in revenue.

    The BEA submitted the proposal to the National Board of Revenue during the pre-budget discussion. According to the BEA, the 70 percent duty would increase cigarette prices by an average of 130 percent. 

  • Tobacco Production up in Bangladesh

    Tobacco Production up in Bangladesh

    Image: Swapan

    Tobacco production is up in Bangladesh’s Lalmonirhat District following last year’s good prices, reports The Financial Express. In 2022, the price of one “mound” of Virginia tobacco leaves was between BDT6,000 ($54.71) and BDT7,000.

    According to the Department of Agricultural Extension, farmers have cultivated tobacco on 7,600 hectares of land in the district this season. Farmers suspect the actual figure is higher, given the prices on offer.

    Critics expressed concerns about the social and environmental impact of tobacco production, citing excessive use of fertilizer and crop protection agents along with the impact on workers’ health.

    “We discourage farmers and tell them about the health risks of family members, but because of the high income, they are interested in tobacco cultivation,” said Hamidur Rahaman, deputy director of the Lalmonirhat Department of Agricultural Extension.

  • Bangladesh Set to Ban Vapes

    Bangladesh Set to Ban Vapes

    Image: luzitanija

    Bangladesh is set to ban vapes and nicotine pouches, according to Filter.

    The government has been considering a vape ban since 2019 when the U.S. e-cigarette or vaping product use-associated lung injury outbreak occurred—later determined to be caused by adulterated illicit products.

    The health ministry has now drafted an amendment to Bangladesh’s Smoking and Using of Tobacco Products (Control) Act, which has been reviewed by the cabinet and must now be approved by parliament.

    If the proposed ban is approved, anyone caught vaping, regardless of nicotine content, will be subject to a fine of BDT5,000 ($46). Sales, production, import, export, storage and transportation of vapes would also be banned, with penalties starting at a higher fine, three months’ incarceration or both. Larger scale activity or repeat offenses would face longer sentences.

    The amendment would also ban flavors in tobacco products, increase the fine for smoking in public places and include further penalties for unlicensed tobacco sales.

    Organizations like the Bangladesh Medical Association support the proposed ban, equating vaping with smoking cigarettes.

    “A ban on vaping devices will have disastrous consequences for people trying to quit smoking cigarettes,” said Nafis Farhan, a member of Voice of Vapers Bangladesh. He attributed continued high smoking rates in the country to “limited availability of cessation tools, such as vapes.”

    The proposed ban represents “a missed opportunity for harm reduction and a setback for public health,” according to Michael Landl, director of the World Vapers’ Alliance.

  • Higher Cigarette Taxes in Bangladesh

    Higher Cigarette Taxes in Bangladesh

    Image: Tobacco Reporter archive

    Cigarette manufacturers in Bangladesh will likely pay higher taxes on gross receipts from the next fiscal year as the National Board of Revenue (NBR) collects more taxes to discourage the “health hazardous” business, reports The Daily Star.

    The proposed tax increase is part of the Income Tax Bill 2023 introduced to Parliament by Finance Minister A.H.M. Mustafa Kamal earlier this month. The proposed bill will replace the current Income Tax Ordinance 1984.

    The new bill would have manufacturers of cigarettes, bidis or handmade cigarettes, chewing tobacco and smokeless tobacco paying a 3 percent tax on turnover at minimum, up from the current 1 percent. It would also place a flat 10 percent tax deducted at source (TDS) traders supplying tobacco leaf to tobacco companies, replacing the multiple rates of TDS.

    “We have proposed a hike in tax rates to discourage tobacco use,” said a senior official of the NBR.

    “We appreciate the NBR for responding positively to the call of raising tobacco taxes by the social activists,” said Atiur Rahman, chairperson of the think tank Unnayan Shamannay.

  • Proposed Increase in E-Cig Import Duties

    Proposed Increase in E-Cig Import Duties

    Image: johan10 | Adobe Stock

    Bangladesh Finance Minister Mustafa Kamal proposed a significant increase in import duties on e-cigarettes and their parts in the proposed budget for the 2023–2024 fiscal year, reports the Dhaka Tribune.

    The import duty on e-cigarettes will be raised from 5 percent to 25 percent, and for parts of electric cigarettes, the duty will be increased by 100 percent. Previously, there was no import duty on the parts of electric cigarettes.

    The minister has also suggested a 150 percent additional duty on liquid nicotine and transdermal nicotine.

    The proposed measures aim to increase import duties and make importation of e-cigarettes and related components more expensive in an effort to regulate their use and reduce their prevalence.

  • BAT to Upgrade Bangladesh Factory

    BAT to Upgrade Bangladesh Factory

    Image: Piotr Pawinski

    British American Tobacco Bangladesh plans to invest BDT607 million ($5.65 million) in equipment and a centralized uninterrupted power supply device, reports The Daily Star.

    In Dhaka Stock Exchange filing, the multinational company said its board has approved the investment decision.

     The company will use the money to purchase winnower tobacco recovery equipment, a hinge-lid cigarette making and packing line, and a centralized uninterrupted power supply device.

    The investment would enhance the capacity and productivity of the company and would be funded from internal sources and bank financing, the filing said.