Price slab, tax incidence on tobacco products up
Finance minister AMA Muhith on Thursday proposed to introduce ‘environment protection surcharge’ or ‘green tax’ on ad-valorem basis on all kinds of products manufactured in the country by the industries which pollute the environment.
Industrial development is needed but it cannot be ignored that this development is also having some adverse effects on the environment by polluting the soil, air and water resources, he said while placing the proposed national budget for the financial year 2014-15 in Jatiya Sangsad.
Muhith proposed to increase both the price slab and tax incidence on the tobacco products to reduce its consumption.
The finance minister proposed to increase the tax on locally-made bidi whose tax structure has been unchanged for the last five years.
He also proposed to impose 1 per cent ‘health development surcharge’ on all imported and domestically produced tobacco products above adjustment of all other tax.
‘Nearly 60 thousand people die and 4 lakh people become crippled every year in the country due to smoking,’ Muhith informed he parliament.
On the first slab of 10 sticks, Muhith proposed increasing the price slab to Tk 15.00-Tk 16.50 from Tk 13.69-Tk13.91 and tax incidence to Tk 58 from Tk 56.
On the second slab of 10 sticks, he proposed increasing the price slab to Tk 32.50-Tk 35.00 from Tk 28-Tk 30 and tax incidence to Tk 75 from Tk 71.
On the third slab of 10 sticks the finance minister proposed increasing the price slab to Tk 50-Tk 54 from Tk 42-Tk 45 and tax incidence to Tk 76 from Tk 74.
On the fourth slab of 10 sticks he proposed increasing the price slab to Tk 90 and above — which was Tk 80 and above — where the tax incidence remains unchanged.
Muhith proposed price of 25 sticks non-filter bidi at Tk 6.14 from existing 5.35 and 20 sticks filter bidi at Tk 6.94 from existing Tk 6.052.
‘I also propose to raise the existing supplementary duty rate on jarda and gul products from 30 per cent to 60 per cent,’ he said.
-With New Age input
