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BATB dodges tax worth 700cr, HC orders to pay

The British American Tobacco Bangladesh (BATB), gold medalist by the government for good governance and improved corporate culture, has evaded tobacco tax to the government from 2009- 10 to 2012-13 fiscal years worth over Tk 798 crores. It has falsified information of one of its medium brand ‘Pilot’ that has been shown as lower. While identified, NBR had issued a demand notice to BATB to pay the tax on November 24, 2013. Challenging the NBR demand BATB filed a writ petition on March 2015. Finally, on March 6, 2016, the High Court (HC) has annulled the writ petition and ordered BATB to pay Tk. 700 crores (after deducting BATB claimed amount) to the government treasury within 30 days after getting the judgment copy. The judgment testifies that BATB had long been dodging taxes to the government and it is expected that the faulty multi-tier tobacco tax system will be cancelled in the coming budget along with the adoption of a single or unified tobacco tax structure. Besides, the government bodies will be more careful in future about conferring gold medal for ‘good governance and improved corporate culture’.