Public Health on Top

Abul Khair Tobacco Company has fraudulently evaded VAT worth 35 million (BDT) against purchasing of tobacco leaf in the last 6 years. Though there is a provision for realizing 5% VAT at source, the company purchased around 5.5 crore kg of tobacco leaf from 2012 to 2017 without paying any VAT. Earlier, in the year 2015, the company was also accused of using fake band roll. Besides, although the multinational tobacco companies are obligated to market their low-tier (10 stick) cigarettes with BDT 35 according to budget 2017-18FY, BATB has been selling its products at a price of BDT 27 and paying taxes accordingly.

To influence the upcoming budget, bidi companies have already started mobilizing human chain and disseminating false information/data in the name of protecting workers' interests. The National Board of Revenue (NBR) is going to hold a pre-budget meeting with the Bangladesh Cigarette Manufacturers’ Association (BCMA) on April 5, 2018. The meeting should be transparent following the recommendations of Article 5.3. Because, earlier, BCMA conducted several meetings with NBR and submitted tax proposals covertly.

Increased tobacco tax is one of the key instruments to protect public health. For this reason, the Honorable Prime Minister emphasized the need for a stronger Tobacco Tax Policy and enhanced tobacco taxes. Our expectation, the pledges will be reflected in the upcoming budget (2018-19).