Govt fetches Tk. 164b in taxes from BATB in 2017

The British American Tobacco Bangladesh (BATB) that recorded an impressive 23.3 per cent (Tk. 38.51 billion) business growth in 2017 calendar year paid Tk. 164.27 billion in taxes to the national exchequer.

The BATB in its annual report for the year 2017 said 'progressive price and tax policy' of the government did contribute to the growth of both business and consequent tax revenue in 2017.

The report will be placed at the company's annual general meeting (AGM) to be held in Dhaka today (Tuesday).

The gross turnover amounting to Tk. 204.14 billion (20,414 crore) was driven by mix improvement and price increase in the low segment.

The company maintained its status as the largest taxpayer in 2017 also. It paid to the national exchequer Tk. 154.64 billion in valued added tax (VAT), supplementary duty (SD) and health development surcharge (HDS), Tk.7.0 billion in income tax and Tk. 2.62 billion in customs duty.

The BATB alone contributed 74 per cent of VAT, SD and HDSC collected from the cigarette industry in 2017.

The company also exported tobacco worth Tk. 2.19 billion during the year under review.

It earned a net profit of Tk. 7.82 billion and the earning per share (EPS) was estimated at Tk. 130.50 as against face value of each share at Tk.10 only. The company paid a cash dividend of Tk.60 (600 per cent) per share to its shareholders.

Mr. Shehzad Munim, in his statement in the annual report listed the illegal cigarette brands a threat to the growth of revenue for the government and sustainability of the industry.

He referred a few successful enforcement drives against illegal cigarettes during the second half of 2017 and expressed the hope that the move would continue on a regular basis.

The report said despite growth in sales of top segments of cigarettes, the overall industry volume in 2017 declined by 4.4 per cent mainly due to decline in low-segment consumption. An upsurge in illegal brands was blamed for the decline.