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BATB attempts manipulating HC verdict on tax evasion by British High Commissioner in Bangladesh

Terming the High Court verdict on tax evasion as discriminatory and unlawful, evidences show that the gold medalist on ‘Good Governance and Improved Corporate Culture’ by the state, British American Tobacco Bangladesh has been creating pressure on the government over remission of the tax evasion fund demand by the National Board of Revenue (NBR) worth tk. 1924 crores. Anti-tobacco experts are on the view that the arrogant attitude shown by BATB terming the verdict of the high court of an independent country as unlawful and discriminatory is similar to contempt of court.
Investigations have found that a team of BATB delegate had met with Alison Blake, the British High Commissioner in Bangladesh on April 8 to inform over the issue. On the meeting, the BATB delegate has handed over a letter signed by Shehzad Munim, Managing Director, BATB which urged the British High Commissioner to immediately intervene to resolve the issue.
The letter, claiming BATB as one of the biggest British investment in Bangladesh, also reads that if the company forced to pay the tax, business viability will be under threat which is unwanted by all of the shareholders and relevant others as the Government of Bangladesh has a 16 percent share in it. With a concealed threat, the letter also reads that a case will be lodged at the International Court of Arbitration under the Bi-lateral Investment Treaties (BIT’s) to seek justice over the issue.
Notably, BATB has evaded tax between 2009-10 and 2012-13 fiscal years by a false declaration of low price segment cigarette Bristol and Pilot while they belong to medium segment. When the issue came in to the notice, NBR - the government wing for revenue collection, issued three demands on November 27, 2013 and asked BATB to pay the tax amount. BATB filed a writ petition on 2015 by challenging the claim. Finally, the honorable High Court division on March 06, 2016, in a verdict, has asked the company to pay the tax amount by 30 days next. Anti-tobacco activists are on the view that BATB has evaded the tax for the existing tier-based price slabs system. So, the government will remove the slab-based pricing system in future and a unified pricing system will be introduced. By the same time, the government bodies need to be aware about awarding gold medals for ‘Good Governance and Improved Corporate Culture’ or otherwise it may has to share some of the bad reputations of the BATB as well.