Death Marketing-1

Zarda-gul industry evading revenues

The National Board of Revenue (NBR) has found evidences of tax evasion of the zarda factory owned by Kaus Mia. Ironically, this very NBR has previously awarded Kaus Mia with the recognition of Best Taxpayer for four consecutive years. According to a recent media story on the NBR investigation, it has been revealed that all the topmost zarda-gul (smokeless tobacco items) producer companies of Bangladesh have evaded taxes and VAT payments. NBR’s investigation is working on a list of 421 brands of zarda and 32 brands of gul in the country. Bangladesh is one of the heaviest tobacco using countries in the world. The use of smokeless tobacco (SLT) products is also prevalent here as well. The total number of SLT users stands at 2.20 cr. according to GATS 2017 data. The cheap price of these products is a major reason behind the widespread use of these products. The prevalence of SLTs use is the highest among the poor and illiterate of the country who, in most cases, do not have access to standard healthcare and necessary scientific information. Women constitute the majority in SLT users as 24.8 percent of adult women use SLTs while the number is 16.2 for men. The SLT companies have been evading tax and VAT payments to keep this slow poisons within the reach of poor people of the country. The weak revenue collection management and faulty taxation system have helped them to make this strategy a success. NBR’s timely measures to investigate the financial wrongdoings of this industry will surely help to protect the majority of the population from tobacco menace.