Bangladesh Electronic Cigarette Tax Increases by 15%
Bangladesh recently announced plans to raise taxes on new products such as electronic cigarettes, the fourth major move this year in the tobacco industry in bangladesh. The Bangladesh Customs Department plans to raise tariffs on imported electronic cigarette products, and analysts point out that in the future, consumer spending on this type of tobacco products will increase. At the same time, the Ministry of Finance said that in the second half of this year, the tax rate of new tobacco products, such as electronic cigarettes, will be increased from 10% to 25%.
The reason is very simple, with electronic cigarette products in the increasingly popular in Bangladesh, which is very popular among young people and consumers with better economic conditions, so the government decided that the second half of this kind of product tax increase.
In fact, as early as the beginning of this year, Bangladesh announced the annual budget has made it clear that this year will be to increase the tobacco tax, but that is mainly aimed at cheaper prices bidi. Bidi cheap cigarette cigarette market accounted for 80% of Bangladesh, and such cheap cigarette harm is relatively large.
Bangladesh aims to raise taxes to gradually abolish the bidi, but there is widespread concern about government revenue will fall so. But this week, the Ministry of Finance said the abolition of Bangladesh bidi and voice, will not cause significant impact on government revenue.
It is estimated that 57000 people die from smoking related diseases each year in Bangladesh, and nearly 300 thousand people suffer from physical and mental disorders, including 15 and 45% of the population
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