The government's move to withdraw the export duty on tobacco contradicts its own plan to discourage cultivation and consumption of the health-hazardous item.
The initiative has not only created worries about a spike in cultivation of tobacco in the land-scarce nation but has drawn criticism from some economists and anti-tobacco campaigners.
The concerns were raised after Finance Minister AMA Muhith proposed waiving 25 percent export duty on tobacco products for fiscal year 2018-19.
At the same, there is a proposal to hike the supplementary duty on low and medium segment cigarettes and the prices of hand-made tobacco stick, locally known as bidi, from next fiscal year.
“On the one hand, we are discouraging local consumption by increasing tax, and on the other, production and export of the health hazardous item are being encouraged with the withdrawal of export duty,” said Towfiqul Islam Khan, research fellow of the Centre for Policy Dialogue.
https://www.thedailystar.net/business/govts-puzzling-policy-tobacco-1592965