Tobacco Companies’ Strategies Centering Budget FY 2021-22

Lobbying
● BCMA Conducted Pre-budget Meeting with NBR
National Board of Revenue (NBR) organized a pre-budget meeting with Bangladesh Cigarette Manufacturers Association (BCMA) on 25 March 2021. On behalf of BCMA, the Managing Director of BAT Bangladesh placed the budget proposals to NBR Chairman that included not increasing tax on tobacco in the upcoming budget FY 2021-22.
https://bangla.bdnews24.com/business/article1873316.bdnews

● BATB Using Business Associations to Influence NBR
With a view to influencing tobacco tax and price related proposals in the national budget, BAT Bangladesh has been using the most significant and influential business associations of the country. BAT Bangladesh officials and board members occupy leading positions in the influential business associations including Federation of Bangladesh Chamber of Commerce and Industries (FBCCI), Metropolitan Chamber of Commerce and Industry (MCCI), Foreign Investors Chamber of Commerce and Industries (FICCI) and International Chamber of Commerce Bangladesh (ICCB). Before budget, BAT Bangladesh representatives have participated and raised their demands in several pre-budget meetings with National Board of Revenue (NBR) under the banner of different business associations.

● Rangpur Bidi Owners Association Placed demand to NBR Chairman
Rangpur Bidi Owners Association has placed a 7-point demand to NBR Chairman in a pre-budget discussion held in Rangpur on 6 March 2021.
https://www.newszonebd.com/news/14491/রংপুর-প্রাক-বাজেট-আলোচনায়-৭-দফা-প্রস্তাব-বিড়ি-মালিকদের?
https://www.banglanews24.com/economics-business/news/bd/845009.details

● Organized Human Chain and press conference by Bidi Companies
Bidi companies have been organizing human chains and press conferences demanding a reduction in taxes under the banner of a number of puppet organizations.
https://unb.com.bd/category/Bangladesh/bidi-workers-protest-against-ngos-tax-hike-proposal/71081
https://www.thefinancialexpress.com.bd/national/bidi-workers-seek-govt-support-1619878381
https://www.tbsnews.net/economy/budget/workers-demand-bidi-price-reduction-256858

Media Campaign

● Published Opinion Article by Like-minded Economic Analyst
- The leading daily Prothom Alo published an opinion on 27 May 2021 titled “Increasing tax coverage of tobacco products is important than to increase tax” written by Mamun Rashid. The opinion mainly argued that if the price of cigarettes goes up, the consumers of low-end cigarettes will be inclined towards low-cost illegal cigarettes. This will increase health risks, as well as deprive the government of large amounts of revenue. Mr. Mamun is the Managing Partner of PricewaterhouseCoopers (PwC) Bangladesh and PwC was BAT’s external auditors from 1998 to 2014.

- The leading English Daily Financial Express published an opinion on 25 April 2021 titled “The dilemma of budget-making”. The opinion said, “The government is not also doing enough to plug another revenue leakage. Cigarettes worth billions of taka are smuggled into the country every year, leading to a substantial volume of revenue loss for the government”.

● Organized TV Talk show by Bidi Companies
A TV talk show titled “Local Industry and Labour Rights” organized in a private TV channel RTV on 3 March 2021. The discussants of the talk show mainly urged not to increase tax on bidi in the upcoming budget. Watch the TV Talk show: https://www.youtube.com/watch?v=LQkSrK96ahw

● Campaign against Fake Products in a Leading National Daily
Against fake products, a campaign has been running in the Daily Samakal since March 2020. As a second part of the campaign, a roundtable organized on 3 April 2021 where the Managing Director of BAT Bangladesh participated and said that if the government will increase the price of cigarette at a higher rate, then the consumers will switch to fake or lower segment cigarette.

The Daily Smakal also published a series of stories focusing on the same on 25 March 2021, 26 March 2021, 01 April 2021, 9 May 2021.

CSR Activity

● Highlighted the CSR activities to attract policymakers ahead of the budget season.

- World Environment Day: Bonayan starts distributing 5 million saplings.

https://www.tbsnews.net/bangladesh/environment/world-environment-day-bonayan-distributes-5-million-sapling-255904

- Deepto's solar power touches 15,000 people in CHT.
https://thefinancialexpress.com.bd/trade/deeptos-solar-power-touches-15000-people-in-cht-1621781789

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PROGGA, June 2021