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Journal Article Details

Welcome to Tobacco Control and Research Cell (TCRC), DIU.

Post Budget Market Reflection of Increase Tax on Smokeless Tobacco (Zorda) in Bangladesh

Context: Although the number of smokeless tobacco users in Bangladesh is 22 million, the issue of proper taxation, tax increase and tax collection is never seriously considered. As a result, the government is losing huge revenue.

Objective: To assess the impact of increase in the price of smokeless tobacco products (Zorda) in the budget for the financial year 2020-21 and its impact on the consumer.

Research Methodology: Both Qualitative and Quantitative methods have been used to carry out the research. Although this is an observational study, data is collected using Semi Structural Questionnaire in Primary Data Collection method.

Results: The study collected data from a total of 125 brands (54 brands from 46 companies) from 6 districts of the country. The study shows that only 56% of brands and 43% of brands have increased their prices, but this increase is only Rs 1-2. Average growth rate is only 1.72 rupees. According to the budget, the price of 5 grams of jorda was fixed at 20 rupees, but the price of all jorda available in the market ranged from a minimum of 3 rupees to 16 rupees. Similarly, even though the price of 10 grams of jordan is Rs 40 according to the budget, it is seen that 10 grams of jordan is being sold at a minimum of 7 to a maximum of 20 taka. And most alarmingly, no Jordai is being sold in the market at the budget price, which is simultaneously a revenue evasion of the government and a threat to public health.

Conclusion: To increase the revenue of smokeless tobacco products and to collect revenue, tracking, tracing and monitoring system should be strengthened and for this purpose smokeless tobacco products should be brought under standard packaging and registration of all tobacco companies big and small. Also adopt a National Tobacco Control Policy and include specific provisions on smokeless tobacco in the policy.

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