A recent proposal for imposing COVID-19 tax on tobacco and luxury products deserves the attention of policymakers. Research has shown that tobacco use is detrimental to public health and tobacco users are more vulnerable to COVID-19. Research also shows that the government intervention in the form of reducing the four tiers of cigarettes into two, raising maximum retail prices and introducing a specific tax is projected to generate additional revenue of about Tk 4,100 crore to Tk 9,800 crore in a year.
A recent proposal for imposing COVID-19 tax on tobacco and luxury products deserves the attention of policymakers. Research has shown that tobacco use is detrimental to public health and tobacco users are more vulnerable to COVID-19. Research also shows that the government intervention in the form of reducing the four tiers of cigarettes into two, raising maximum retail prices and introducing a specific tax is projected to generate additional revenue of about Tk 4,100 crore to Tk 9,800 crore in a year.
