Trend in the affordability of tobacco products in Bangladesh: findings from the ITC Bangladesh Surveys

• Published in: Tobacco control Vol. 28; no. Suppl 1; pp. s20 - s30
• Main Authors: Nargis, Nigar, Stoklosa, Michal, Drope, Jeffrey, Fong, Geoffrey T, Quah, Anne C K, Driezen, Pete, Shang, Ce, Chaloupka, Frank J, Hussain, A K M Ghulam
• Format: Journal Article
• Language: English
• Published: England BMJ Publishing Group LTD 01.05.2019
• Subjects: Adolescent; Adult; Bangladesh; Cigarette industry; Cigarettes; Commerce - statistics & numerical data; Commerce - trends; Consumer Price Index; Costs and Cost Analysis - statistics & numerical data; Costs and Cost Analysis - trends; Cross-Sectional Studies; Economic development; Economic models; Excise taxes; Expenditures; Family income; Female; Flexible packaging; GDP; Gross Domestic Product; Households; Humans; Income; Income - statistics & numerical data; Income - trends; Income distribution; Low income groups; Male; Market prices; Package design; Per capita; Polls & surveys; Regression analysis; Self report; Smoking; Socioeconomic Factors; Tariffs; Tax increases; Tax rates; Taxation; Tobacco; Tobacco Products - economics; Trends; VAT; Young Adult; Bangladesh; Canada; United States > US; Economics; Price; Taxation
• ISSN: 0964-4563; 1468-3318
• DOI: 10.1136/tobaccocontrol-2017-054035

BackgroundThe price of tobacco products in relation to the income of tobacco users—affordability—is recognised as a key determinant of tobacco use behaviour. The effectiveness of a price increase as a deterrent to tobacco use depends on how much price increases in relation to the income of the potential users. The aim of this paper is to examine the distribution of and trends in the affordability of tobacco products in Bangladesh.MethodUsing four waves of International Tobacco Control Survey data on Bangladesh, this study measures affordability of tobacco products at the individual level as the ratio of self-reported price and self-reported income. The trends in affordability by brand categories of cigarettes and of bidi and smokeless tobacco are estimated using multivariate linear regression analysis.ResultsDespite significant increase in price, the affordability of cigarettes increased between 2009 and 2014–2015 due to income growth outpacing price increase. The increase was disproportionately larger for more expensive brands. The affordability of bidis increased over this period as well. The affordability of smokeless tobacco products remained unchanged between 2011–2012 and 2014–2015.ConclusionThe tax increases that were implemented during 2009–2015 were not enough to increase tobacco product prices sufficiently to outweigh the effect of income growth, and to reduce tobacco consumption. The findings from this research inform policymakers that in countries experiencing rapid economic growth, significant tax increases are needed to counteract the effect of income growth, in order for the tax increases to be effective in reducing tobacco use.