Govt urged to reshape duty structure on Bidi industry
Monday, 3 May 2010
FE Report
As many as 2.4 million Bidi workers lost jobs during the period of 2001-07, as the duty on the cheapest handmade cigarette industry was raised by 166 percent, forcing 52 percent factories to close, industry insiders told the FE.
They urged the government to reshape the duty structure on the bidi industry.
According to statistics revealed by Bangladesh Bidi Workers Welfare Federation (BBWF), a total of 113 out of 218 small and medium-scale Bidi factories were shut down during the period.
Apart from leaving 2.4 million workers unemployed during the seven years, the increased duty has also forced the existing 105 factories to halve their workforce, the federation claimed.
"This is a disaster for our traditional Bidi industry, which is largely a cottage industry and employs the poorest communities of the country," said Shaikh Mohiuddin, who owns the country's leading Bidi factory 'Akij Bidi.'
Repeated imposition of duty on the Bidi industry is actually helping the consumers to turn to the cheaper brands of cigarette, as the locally-made Bidi price stays almost at the same level with the industrial cigarette brands including those of international tobacco giants, Mr Mohiuddin explained.
"In order to support our cottage industry-based products and millions of workers who depend on them, we urge the government to reshape the duty structure, differentiating between industrial cigarette products and hand-made Bidis'," he said.
Citing an example of the country's closest neighbour India that kept the Bidi industry out of all duty structure, Mr Mohiuddin requested the government to take a positive initiative, until the 2.5 million poor workers currently employed in these factories, find alternative source of income.
As many as 2.4 million Bidi workers lost jobs during the period of 2001-07, as the duty on the cheapest handmade cigarette industry was raised by 166 percent, forcing 52 percent factories to close, industry insiders told the FE.
They urged the government to reshape the duty structure on the bidi industry.
According to statistics revealed by Bangladesh Bidi Workers Welfare Federation (BBWF), a total of 113 out of 218 small and medium-scale Bidi factories were shut down during the period.
Apart from leaving 2.4 million workers unemployed during the seven years, the increased duty has also forced the existing 105 factories to halve their workforce, the federation claimed.
"This is a disaster for our traditional Bidi industry, which is largely a cottage industry and employs the poorest communities of the country," said Shaikh Mohiuddin, who owns the country's leading Bidi factory 'Akij Bidi.'
Repeated imposition of duty on the Bidi industry is actually helping the consumers to turn to the cheaper brands of cigarette, as the locally-made Bidi price stays almost at the same level with the industrial cigarette brands including those of international tobacco giants, Mr Mohiuddin explained.
"In order to support our cottage industry-based products and millions of workers who depend on them, we urge the government to reshape the duty structure, differentiating between industrial cigarette products and hand-made Bidis'," he said.
Citing an example of the country's closest neighbour India that kept the Bidi industry out of all duty structure, Mr Mohiuddin requested the government to take a positive initiative, until the 2.5 million poor workers currently employed in these factories, find alternative source of income.