21 MPs lobby govt not to increase tax on bidi

A number of lawmakers this year, like the previous years, have requested the finance ministry and the National Board of Revenue not to increase taxes on bidi in the upcoming national budget for the fiscal year of 2019-2020.
In separate letters containing same text, the members of parliament made the request to finance minister AHM Mustafa Kamal and NBR chairman Md Mosharraf Hossain Bhuiyan ignoring the harmful impact of tobacco products on public health and the government’s promises to make the country tobacco free by 2041.
Tax officials said that they received the letters from at least 21 MPs with the request of not increasing the tax considering the employment generation for rural poor people in the sector.
The MPs who wrote the letters include Mayeen Uddin Khan Badal from Chattogram-8, Nurunnabi Chowdhury from Bhola-3, Joaherul Islam Joaher from Tangail-8, Emaz Uddin Pramanik from Noagaon-4 and Salma Islam from reserved seat for women.
Tax officials said that the MPs wrote the letters considering the workers as their vote bank and being influenced by bidi makers.
In the letters, they claimed that around 25 lakh workers were engaged in bidi industry across the country and the government should not impose tax on bidi next year considering the employment of people, particularly rural women.
They also requested the government to declare the sector as cottage industry.
Currently, there is 30 to 35 per cent supplementary duty, 15 per cent value-added tax and 1 per cent health development surcharge applicable to bidi.
There are also different price slabs for bidi based on filter and non-filter bidi.
Various health organisations and anti-tobacco activists have been demanding a raise in the tax and imposing 45 per cent ad valorem duty along with the existing VAT and health surcharge on the products.
They also rejected the claim that 25 lakh people were employed in the sector.

Source: newagebd, 03 June 2019