Bangladesh - Tobacco Reporter

Bangladesh Urged Against Interference

Bangladesh should monitor the tobacco industry’s attempts to influence the formulation and implementation of graphic health warnings, according to a new study in the British Medical Journal’s Tobacco Control, reports United News of Bangladesh.

The study, “Tobacco Industry Interference to Undermine the Development and Implementation of Graphic Health Warnings in Bangladesh,” examines the tobacco industry’s efforts to “delay and weaken” the implementation of graphic health warnings in Bangladesh.

The Bangladesh Cigarette Manufacturers’ Association was the most active industry actor in “interfering” with the process, according to the study, while BAT Bangladesh was most active and the only company that acted alone to thwart graphic health warning implementation.

The study urges the government to adopt the World Health Organization Framework Convention on Tobacco Control’s Article 5.3 guidelines and make their implementation a policy priority.

May 1, 2023

Vape Group Calls for Stakeholder Input

The Bangladesh Electronic Nicotine-Delivery System Traders Association (BENDSTA) called on authorities to consult with all stakeholders before making any policy decisions on vaping, reports The Business Standard.

During a press conference in Dhaka on Tuesday, the organization also called for excluding vaping and other electronic nicotine-delivery system products from the proposed amendment of the Smoking and Tobacco Products Control Act 2005, according to a press release.

The BENDSTA fears that a ban on vaping will jeopardize the prime minister’s vision of making the country tobacco-free by 2040.

Many former smokers who successfully quit smoking cigarettes using vaping devices might resort back to smoking traditional cigarettes again if vaping gets banned in the country, the organization warned.

Not only will this increase the number of smokers in the country, but the government will also lose the opportunity to balance its health and revenue agenda from an emerging sector, BENDSTA speakers said.

BENDSTA President Masud Uz Zaman criticized the country’s health authorities for not including the association as relevant stakeholders in the process of developing such a crucial policy framework.

“If any amendment is proposed regarding vaping, we are definitely an important stakeholder. It is unreasonable to not take our opinion and completely exclude us from the lawmaking process. Despite sending letters to the Ministry of Health repeatedly, they have refrained to sit with us to discuss the issue,” Zaman said.

Zaman stressed that these tobacco harm reduction products should be made legal and regulated sensibly to achieve the prime minister’s vision of a tobacco-free nation.

The proposed amendments called for a total ban on vaping products.

January 19, 2023

Shopkeepers up in Arms Over Tobacco Bill

Bangladesh’s proposal to require all tobacco businesses to obtain licenses will adversely impact the livelihoods of small traders and hurt government revenue, according to critics.

Lawmakers are currently reviewing a draft law that would ban tobacco sales from makeshift shops, outlaw product displays and prohibit the sale of single cigarettes, a common practice in many low-income countries.

Muhammad Helal Uddin, president of the Bangladesh Shop Owners Association, insisted licenses should be required only for manufacturers and warned that shopkeepers would take to the streets if the bill became law.

Meanwhile, economists predicted that the proposal would deprive the government of significant tax earnings at a time of economic hardship.

“The tobacco sector is the largest contributor to VAT income. Any abrupt decision without the consultation of the revenue board would surely backfire and nosedive revenue income,” an unnamed National Board of Revenue official was quoted as saying by the Dhaka Tribune.

The National Board of Revenue earned nearly BDT300 billion ($2.91 billion) from cigarette taxes in fiscal 2021–2022—equivalent to approximately 10 percent of Bangladesh’s total revenue income.

Ahsan H. Mansur, executive director of the Policy Research Institute, cautioned that the draft law would boost the illegal trade in tobacco products and drive up sales of low-cost brands at the expense of higher priced varieties.

“Since these vendors will not get the supply of top brands produced by the multinational tobacco companies, they will sell low-quality brands of the local companies that are least interested in complying with rules and regulations,” said Mansur.

Mansur advised government to instead focus on raising awareness of the health risks of tobacco consumption.

According to Global Adult Tobacco Survey, 44 percent of Bangladeshis used tobacco in 2009. Through a range of anti-tobacco measures, the government brought down this number to 34 percent in 2017. If the trend continues, the smoking rate could dip below 5 percent over the next 15 years to 20 years, according to Mansur.

October 7, 2022

Bangladesh Urged to Keep Vapes Legal

Bangladesh must keep e-cigarettes legal if it wants to achieve its goal of becoming a tobacco-free country by 2040, according to tobacco harm reduction activists.

Speaking during a webinar organized by the Bangladesh-based Voices of Vapers and reported by The Daily Star, several experts addressed the government’s recent proposal to ban vapor products, heat-not-burn devices and other cigarette alternatives in a new amendment to the country’s tobacco control legislation.

Delon Human, president of Health Diplomats, said there is no evidence for the National Tobacco Control Cell’s statement that nicotine in vapes is more harmful than cigarettes.

“There needs to be a credible harm reduction strategy as practiced by many developed countries,” he added. “The authorities must consider regulating a safer alternative, such as vape, and make it accessible to smokers wanting to quit.”

Schumann Zaman, president of the Bangladesh Electronic Nicotine Delivery System Traders Association, said not recognizing vape traders and vape users as stakeholders will have major consequences as many of these vapers are using e-cigarettes as a smoking cessation tool.

John Dunne, director general of the U.K. Vaping Industry Association, said vapes should be regulated separately because vapes and cigarettes are different products.

“Vapes are far safer and a proven method of nicotine-replacement therapy [NRT]. Regulating vapes will help smokers who are trying to quit have access to vapes,” he added.

“Countries such as the U.K., France, New Zealand and Canada have successfully lowered smoking rates by using vaping as NRT. Banning vapes will lower the number of smokers trying to quit.”

September 6, 2022

Push To End ‘Essential Commodity’ Status

The Bangladesh Ministry of Health and Family Welfare has asked the Ministry of Commerce to remove cigarettes from the essential commodities list, reports The Business Standard. The removal is necessary to help the government achieve its “tobacco-free Bangladesh” objectives, according to the health ministry.

Any product covered by the Essential Commodities Act enacted 66 years ago can be freely promoted for wholesale and retail, and no restrictions can be imposed on the marketing of these products, even under emergency circumstances.

Workers in the essential commodities sector cannot strike, and no essential commodities can be hoarded. The essential commodities list was created when Bangladesh was still part of Pakistan. Over the years, new products, including palm oils, turmeric and cumin, have been added, but none have been taken off. Other products on the list include typewriters, 35 mm (cine) raw films and sewing machines.

The law permitted tobacco companies to continue operating through the Covid-19 pandemic, even as other factories, including in Bangladesh’s garment industry—the country’s main export sector—were shut down.

In 2016, Prime Minister Sheikh Hasina set a goal to make Bangladesh tobacco-free by 2040.

Because cigarettes are listed as an essential product, however, it is impossible for the government to fully implement the Smoking and Using of Tobacco Products (Control) Act.

Further complicating matters, cigarettes are the largest source of government revenue. The National Board of Revenue collected BDT278.3 billion ($2.95 billion) in value-added tax and excise duty from cigarettes in fiscal year 2021–2022.

According to the Bangladesh Cancer Society, the government spent BDT305.7 billion in fiscal year 2017–2018 to treat patients with tobacco-related illnesses.

July 28, 2022

Bangladesh Mulls Ban on E-Cigs and Pouches

Bangladesh’ Ministry of Health and Family Welfare wants to amend the country’s tobacco act to ban e-cigarettes and oral nicotine pouches, reports The Business Standard. The proposal also includes new restrictions on combustible tobacco products.

Health activists have been calling for prohibition of e-cigarettes, which are not mentioned in the current legislation. The proposal would prohibit not only the consumption of vapor products, but also the production, import, export, storage, sale and transportation of e-cigarettes or their parts.

People caught vaping would face maximum fine of BDT5,000 ($53.80) under the plan, while producers and traders would risk imprisonment for a maximum of six months or a fine not exceeding BDT200,000 or both for the first time. The punishment would double each time the offence is repeated.

E-cigarettes started arriving informally in Bangladesh a few years ago and quickly became popular. As demand increased, British American Tobacco started producing and selling e-cigarettes in the market. Japan Tobacco is also reportedly preparing to market e-cigarettes in Bangladesh.

The health ministry’s proposal would also tighten restrictions on traditional tobacco products. Among other provisions, it includes a ban on flavors and an increase in the size of graphic health warnings to 90 percent of the packaging’s surface from the 50 percent required under current legislation. The draft also foresees new retail licensing requirements and limitation on where tobacco can be sold.

The health ministry has recently sent copies of the draft to stakeholders. The Directorate General of Health Services is accepting opinions on the draft until July 14.

June 28, 2022

Bidi Workers Demand Protection Against Cigarettes

Bidi workers in Bangladesh formed a human chain on June 21 outside of the Pabna Deputy Commissioner’s office, demanding protection against competition from “foreign” cigarettes, reports The New Nation.

According to the leaders of the group, the biggest competitors to bidis are low-quality cigarettes, which are mostly owned by foreign companies and have not been set to increase in price much in the 2022/2023 budget.

“Bidi industry is a domestic worker-friendly industry,” the group leaders said. “Bidi is a 100 percent indigenous technology-based industry. On the other hand, everything in cigarettes is imported from abroad and depends on technology. Foreign multinational companies are smuggling thousands of crores of rupees by burning the lungs of the people of this country.

“If all kinds of conspiracies against the domestic bidi industry, including the withdrawal of discriminatory advance income tax, are not stopped, we will be forced to wage a fierce agitation.”

After the protest, the leaders of the group presented a memorandum to the prime minister through the deputy commissioner of Pabna.

The group demanded an increase in the price of low-quality cigarettes, withdrawal of a 10 percent tax on bidis, and legislation to protect bidi workers.

June 22, 2022

Bangladesh: MPs Want Tobacco-Free Country

About 40 Members of Parliament (MPs) adopted a declaration to achieve tobacco-free status in Bangladesh by 2040, according to The Dhaka Tribune.

MP Habibe Millat presented the declaration at a media briefing on May 20, 2022, in Cox’s Bazar. The three-day Conference on Achieving a Tobacco-Free Bangladesh by 2040 was organized by the Bangladesh Parliamentary Forum for Health and Well-Being (BPFHW) at the Sea Pearl Resort. The conference was organized in association with the Shastho Shurokkha Foundation and Campaign for Tobacco-Free Kids (CTFK) Bangladesh.

Signed by Habibe, chairman of the BPFHW, the 16-point declaration acknowledged the progress on the commitment so far, recognized the urgent need for action and recommended some key actions to realize the vision.

Officials noted progress through the Smoking and Using of Tobacco Products (Control) Act 2005, as amended in 2013, and the Smoking and Tobacco Products Usage (Control) Rules 2006 and 2015, which led to a reduction in overall adult smoking rates from 43.3 percent in 2009 to 35.3 percent in 2017.

May 23, 2022

BAT invests in Bangladesh

British American Tobacco will invest BDT5.74 billion ($66.55 million) in its Savar, Bangladesh, operations to cater to export opportunities and create contingency capacity, reports The Daily Star.

The announcement follows a BDT5.14 billion investment in 2021 to increase the facility’s production capacity.

“With an eye on future exports, the board has approved an investment of about Tk 574 crore to further expand the Savar factory’s production capacity,” said Sheikh Shabab Ahmed, head of external affairs at BATBC.

“We believe with the improved capacity we will be equipped for any future demand,” he added.

In 2021, the company’s net turnover rose 24 percent to BDT74.87 billion, up from BDT60.29 billion the previous year, according to its annual report. In the same period, BAT Bangladesh logged profits of BDT14.96 billion, up 37.5 percent over that posted in 2020.

BATBC has cigarette factories in Dhaka and Savar, a green leaf threshing plant in Kushtia, a green leaf re-drying plant in Manikganj, and a number of leaf and sales offices throughout the country.

April 4, 2022

Bangladesh Investigates BAT’s Dominance

Japan Tobacco International has accused BAT Bangladesh of anti-competitive practices, reports The Daily Star. The Bangladesh Competition Commission (BCC) is investigating the complaint.

United Dhaka Tobacco Company (UDTCL) alleges in the complaint that BATB abuses its dominant position. JTI filed the case in March 2021, three years after entering Bangladesh’s tobacco market by acquiring UDTCL for $1.47 billion in 2018 from Akij Group.

When JTI entered Bangladesh, UDTCL had a 19.8 percent share in the cigarette market, which has now dropped to 12.6 percent. JTI alleges this is due to BATB’s anti-competitive practices.

BATB is the leading cigarette seller in the country followed by JTI and Abul Khair Tobacco.

BATB had a more than 95 percent share in the premium and “high” segment of the market, according to a 2019 study. Its share in medium and low segments was 65 percent and 58 percent, respectively.

JTI alleges that BATB operates a program with its retailers to prevent competition in the market and stop rivals from gaining more market access. Under the alleged program, if a BATB partner retailer stocks or sells United Dhaka Tobacco products, BATB or its representatives penalize or deduct loyalty points from the retailers or threaten to stop supplying products to the retailers.

“BATB runs the program directly and/or indirectly through its representative and/or distributor,” said JTI, adding that it earlier requested BATB to put an end to all programs and acts that restrict competition.

BATB denied the allegations, according to the JTI complaint.

Md Mofizul Islam, the chairperson of the BCC, says the commission is investigating the case. “We will try to give a verdict as soon as possible after holding a hearing.”

January 24, 2022

Tag: Bangladesh