MANOBIK Cycle Rally
Raise Prices on Tobacco, Lower Prices on Bicycles

30 April 2006

Which is better for our youth, tobacco or bicycles?  We all know that tobacco is a dangerous product that causes cancer, heart disease, respiratory problems, and many other diseases and death.  Meanwhile bicycles are an environmentally-friendly and popular means of transport.  Bicycles provide inexpensive transport and support health by providing exercise to the rider.  Yet the price of tobacco products stays the same year after year, while the price of bicycles continually increases.  Which one will we prioritize?

Today at 10:30 a.m. MANOBIK, an anti-drug NGO, organized a bicycle rally demanding an increase in tobacco taxes and a reduction in bicycle taxes in the next budget.  The rally began at Charu Kola at Dhaka University, and ended at the National Board of Revenue.  The rally participants then presented the Chairman of the National Board of Revenue with a petition.

Rally participants explained that tobacco causes harm both directly and indirectly to developing countries, adversely affecting public health, the economy, and the environment.  They explained that to reduce the use of tobacco, the most effective measure is to raise the tax, which would also result in a decrease in medical costs to treat the diseases caused by tobacco use.

Participants explained that at present the tax on cigarettes is from 35-65%, yet the price of cigarettes has remained essentially unchanged for years, despite significant increases in the prices of essential goods.  This is only possible due to the extremely high mark-up on the price of cigarettes, of which the government gets only a tiny portion, while the rest contributes to tobacco industry profits.

The experience of many countries indicates that any significant increase in tobacco taxes is accompanied by a dramatic decrease in tobacco use, particularly among the two most important groups:  youth and the poor.  Given the low income of many workers and students, if a tobacco tax increase caused them to stop tobacco use, they would have more money available for basic needs. 

At the same time, transport expenditures are a major strain on the poor.  The most affordable form of transport for all groups, after walking, is cycling, which could contribute to a tremendous decrease in transport expenditures, as well as offering many other benefits to cyclists.  In addition, bicycles create no pollution, require no fuel, use little road space, and keep their users healthy. 

Despite all these advantages, the tax on bicycles is 69.5%, which means that a 3,000 taka bicycle costs the buyer 5,000 taka.  As a result, bicycles are unaffordable for many of those who most need them.  By ending or drastically reducing the tax on bicycles, the poor could purchase this extremely affordable transport, thereby greatly reducing their monthly transport costs and improving their ability to access jobs, education, and other services.

The rally participants therefore demanded in their rally that tobacco taxes be increased by 100% and the tax on bicycles be greatly reduced in the next budget.

Speakers at the start of the rally were MANOBIK’s President, Rafiqul Islam Milon, the Coordinator of Roads for People, Maruf Rahman, and WBB Program Manager Syed Mahbubul Alam Tahin and Research Officer, Buddhadeb Biswas.  Others participating in the rally included Hungry Project, Ushika, Pratyasha, Dhaka Cycling Club, Cycle Assembling and Import Association, Sramik Federation, and Welfare Association for Cancer Care.