Managing Directors (MDs) of the three major players in the cigarette manufacturing sector have expressed deep concern over the recent fiscal policy revisions, particularly the significant increase in supplementary duties (SD) on the cigarette industry. The MDs of BAT Bangladesh, JTI Bangladesh, and Philip Morris Bangladesh stated that they “feel compelled to publicly express concerns” regarding the revised tax measures, as they expect serious implications that threaten the business sustainability in the country. “While we fully recognise and support the Government’s need to increase internal revenue, we strongly believe that the recent policy changes will have serious long-term consequences for the industry sustainability, the economy, and the livelihoods of millions who depend on it.” they said in a statement. A recent Oxford Economics report highlights that in FY 2022-23, the cigarette industry contributed BDT 346.4 billion in tax receipts, accounting for 11.6% of Bangladesh’s tax revenues, which is almost 10 times higher than the global average of tobacco tax accounting for 1% of nation’s tax revenues. It also noted that the largest FDI inflow in 50 years occurred when Japan Tobacco International acquired Dhaka Tobacco Industries for approximately USD 1.5 billion. The report further mentioned the societal contribution the industry made locally, supporting an estimated 1.6 million jobs in Bangladesh. Industry leaders raised their voice that the tobacco industry has become one of the country’s highest revenue-generating sectors that has aided the economy in times of crises, providing a double-digit growth in revenue year-on-year. In 2023-24 fiscal year alone, the industry contributed approximately Tk 40,000 crore in revenue, 16 per cent up from the previous year’s contribution. In the last decade, the tax rates in the tobacco sector have increased substantially in Bangladesh, from 66% of the retail price in 2014 to 77% in 2024. Within six months since the last tax increase by the Government, the National Board of Revenue (NBR) has increased the tobacco tax rate to even higher 83% of the retail price for the whole market this January. This change was announced and implemented without any formal industry consultation. The industry predicts that the latest tax hike will lead to a decline in volume and margin of the legitimate industry – adversely impacting the livelihoods of 4.4 million people across the value chain, including over 150,000 farmers, 1.3 million retailers and labourers in the country. In addition to the tobacco tax increase, the cigarette industry in Bangladesh pays another 47.5 per cent corporate tax, which is one of the highest in the world. The three tobacco industry leaders make up approximately 90 per cent of the total industry in terms of revenue contribution in Bangladesh. The three MDs further expressed their disappointment with the lack of consultation and abrupt policy change. They said, “Despite having the largest and one of the oldest Foreign Direct Investment (FDI) in this sector, the industry was blindsided with the latest policy change, which creates a perception of policy inconsistency and ultimately impacts both domestic and international investor confidence in a negative way.” Monisha Abraham, Managing Director, BAT Bangladesh, remarked, “As the highest taxpayer of the country and a publicly listed company, it is extremely concerning for us to see such significant excise increase in only a span of seven months. This, coupled with increasing cost of sales, will threaten industry sustainability. Furthermore, the troubling departure from established policymaking norms, such as stakeholder consultation, sends out a negative signal on the business climate of the nation.” Paul Holloway, Managing Director, JTI Bangladesh, said “JTI is a recent and significant investor in Bangladesh, with JT Group investing around $2 billion in the last six years. A cornerstone of attracting and retaining foreign investment is providing a sustainable and predictable business environment. Sudden changes in tax levels without proper industry consultation, especially when introduced with immediate effect, are contrary to this principle. We urge the government to engage the industry in meaningful discussions to create a taxation model that meets government revenue targets, provides a fair operating environment for tax-paying companies, and includes a calendar of annual increases. With this in place, all parties will benefit.” Reza-ur-Rahman Mahmud, Managing Director, Philip Morris Bangladesh, added, “The government should consider implementing a structural reform to the existing tobacco taxation system, focusing on long-term sustainability and predictability. Rushed decisions, such as the drastic excise increase and the significant import duty hike for unmanufactured tobacco, move in the opposite direction. Moreover, the import ban on Electronic Nicotine Delivery Systems (ENDS), which are legally available in more than 90 countries, ignores scientific evidence and restricts the access of adult smokers to better alternatives, to the detriment of public health.” The MDs have urged the government to reverse recent SD increases, develop a long-term fiscal roadmap to prevent further shocks for the industry, and ensure meaningful stakeholder consultation to craft sustainable policies. “We do believe there is a way to embed a long-term fiscal policy for this sector that will continue to protect the Government revenue, local job opportunities, and FDIs to contribute to the economic growth of the country. At the same time, we advocate a sensible fiscal policy that does not put excessive burden to the consumers, which would enable tax and price increases in line with what consumers can afford. We stand ready to continue working with the government to find future-fit solutions that ensure sustainable revenue generation as well as industry sustainability,” they said.

BAT Bangladesh has been recognised as the top taxpayer for the 2022-2023 fiscal year by the Large Taxpayers Unit (LTU) of the National Board of Revenue (NBR). The company, contributing an amount of Tk 1,352 crore as Corporate Tax to the national exchequer, received recognition for being the highest taxpayer for the fiscal year 2022-23,said a press release. Bhumi-Pedia will be a reliable digital tool for landowners: Land Secretary On Wednesday, the LTU organised a ceremony at the NBR office, Agargaon, where the chief guest was  Syed Mohammad Abu Daud, Member - Tax Administration and Human Resource Management, NBR. The function was presided over by Md. Iqbal Bahar, Tax Commissioner, LTU, Dhaka. BAT Bangladesh’s Company Secretary - Mr Azizur Rahman FCS, Area Head of Corporate Finance - Nashva Bint Hamid and Assistant Manager, Fiscal Affairs - Baizid Haque Joarder received the accolade on behalf of the company. ‘Upstream countries avoid downstream nations in South Asia for fairer water sharing’ After receiving the recognition as the top taxpayer, Md. Azizur Rahman said, “BAT Bangladesh fully complies with the laws and regulations of the Country, maintains complete transparency and pays taxes on time. In order to build a Smart Bangladesh, we strongly believe we can play a pivotal role as a significant partner in the country's development in the coming years." 9 more wells to be drilled in Bhola to expedite local gas production: Nasrul Hamid BAT Bangladesh contributed approximately Tk 31,507 crore in the forms of Value Added Tax (VAT), Supplementary duty (SD), Corporate Tax, Import Duty and other duties during the said fiscal year.

The National Board of Revenue (NBR) Wednesday honoured British American Tobacco (BAT) Bangladesh with the highest income taxpayer award in the others (company) category for 2021-22 fiscal. The company earned recognition for nine successive years. NBR conferred the award to BAT Bangladesh during an event in Dhaka; Finance Minister AHM Mustafa Kamal was the chief guest. Golam Mainuddin, chairman of BAT Bangladesh, received the award. Read more: BAT Bangladesh scoops up ACES Awards 2022 as 'top sustainability advocate' "We are humbled to receive the highest taxpayer award again, and as always, we feel proud to have contributed to the development of the country's economy as we sincerely believe the contribution to the national exchequer plays a crucial role in keeping the wheels of the economy running and an essential part of the country's growth journey," Mainuddin said. During the aforementioned fiscal year, BAT Bangladesh contributed approximately Tk28,280 crore to the government exchequer through VAT, supplementary duty, income tax, and other means, the multinational corporation said.

British American Tobacco Bangladesh (BAT Bangladesh) has won the Asia Corporate Excellence and Sustainability (ACES) Awards 2022 as a "top sustainability advocate." The company has been honoured for its contributions to environment, social and governance (ESG) practices. Since its investiture in 2014, the ACES Awards, initiated by the MORS Group, has grown to become "one of the most sought-after accolades in Asia." Read: BAT Bangladesh chairman Golam Mainuddin gets lifetime service award In honouring the ingenious innovation, capabilities and resilience of the industry trailblazers, ACES has specially handpicked the creme de la creme corporations as the award recipients for its ninth edition. All award recipients fulfilled a stringent evaluation and judging process spanning over nine months which required various documentation submissions and finalist interviews. "As a sustainability champion, BAT Bangladesh has demonstrated how the implementation of long-term sustainability strategies allows businesses to capture opportunities and shape their post-pandemic future, where survival alone is not enough." Shanggari B, CEO of MORS Group, said in a statement. Read: BAT Bangladesh scoops up ‘ICMAB Best Corporate Award’ for sixth time BAT Bangladesh Managing Director Shehzad Munim said: "It fills us with immense pride to have won this global award for two consecutive years. Such recognition exemplifies our dedication to collaborating with communities and stakeholders to create a better tomorrow." "For 112 years, BAT Bangladesh has prioritised sustainability in its operations.  Unnecessary single-use plastic elimination, zero-waste-to-landfill, water recycling, and carbon neutrality are the company's ESG goals. By 2030, the company aims to have carbon-neutral operations with 100 percent renewable electricity and net-zero emissions across its value chain by 2050," according to a statement. Bangladesh recognises the severity of the water crisis and acknowledges its responsibility in ensuring good water governance across all levels of the organisation. Read More: Islami Bank scoops up ICMAB Best Corporate Award In 2022, BAT Bangladesh became the first company in the country to receive Alliance for Water Stewardship (AWS) core certification for its Dhaka factory and Green Leaf threshing plant in Kushtia. The company said it has educated farmers on sustainable agricultural methods to improve soil fertility, preserve water, and minimise pollution. Under its ESG endeavour, the nation's largest private sector-driven afforestation programme has provided beneficiaries with 120 million free saplings.

BAT Bangladesh secured the ICMAB Best Corporate Award-2021 (gold) under MNC Manufacturing Category for the sixth consecutive time. The Institute of Cost and Management Accountants of Bangladesh (ICMAB) awarded the prize for their outstanding performance at a function at InterContinental Dhaka in the capital on Thursday (December 01, 2022). Minister for Commerce Tipu Munshi handed over the award to its Chairperson Golam Mainuddin and Managing Director Shehzad Munim at the programme where Senior Secretary to the ministry of Commerce Tapan Kanti Ghosh was also present. Read more: BAT wins Bangladesh Innovation Award for SDG Inclusion Professor Shibli Rubayat-Ul-Islam, chairman of Bangladesh Securities and Exchange Commission (BSEC) and Md Jashim Uddin, president of FBCCI were also present as special guests there. Along with the government officials, many entrepreneurs, business elites of the country and top executives of different companies were present in the ceremony as honourable guests. The ICMAB National Award is given every year to recognize the invaluable contribution made by the corporate entities in different sectors of the national economy and to encourage increased competitiveness for efficiency.  Read more: PM to provide prize money for all SAFF Champion footballers, houses based on need

British American Tobacco (BAT) Bangladesh on Sunday donated Tk 9.15 crore to the Labour Welfare Fund under the Ministry of Labour and Employment. BAT Bangladesh has been regularly contributing to this fund since the introduction of the Bangladesh Workers Welfare Foundation Act, according to a press release. On behalf of BAT Bangladesh, a four-member delegation comprising Head of Human Resources Department of BAT Bangladesh Saad Jasim, Head of External Affairs Sheikh Shabab Ahmed, company’s two other high officials Adrita Dutta and Akhtar Anwar Khan handed over the cheque to State Minister for Labour and Employment Begum Mannujan Sufian in the conference room at the Secretariat. During the programme, Labor and Employment Secretary KM Abdus Salam, Director General of Bangladesh Workers Welfare Foundation Mollah Jalal Uddin NDC and other officials were also present amongst others. BAT Bangladesh has been working as a partner of the Government's initiative for more than 110 years. In the past 10 years, BAT Bangladesh has so far contributed a total of Tk 58.15 crore to the fund. Since the Labour Welfare Fund was formed, BAT Bangladesh has been donating a portion of their profit regularly to the fund as a responsible organization. BATB has solely contributed 15 percent of the total accumulated Welfare Fund.