MPs lobbying not to impose higher tax on bidi
Saturday, 7 May 2011
Doulot Akter Mala
The country's lawmakers are actively lobbying to resist imposition of higher tax on bidi in the budget for upcoming fiscal, ignoring its harmful affect on public health and bidi factory workers. Every year a number of lawmakers start lobbying before budget for not imposing any tax on bidi, considering employment of millions of people, mainly in the north Bengal region. The members of parliament (MPs) want to patronise the industry to protect their 'vote-bank', revenue officials and health experts said. According to the health experts, the health cost associated with bidi is very high. Cigarette and bidi should be treated equally in terms of raising tax, as both of the tobacco items are equally harmful for public health, they said. During the last few years, tax rates are steadily increasing on bidi, low-brand cigarettes, and chewing tobacco products (jarda and gul), consumed by low-income group of people, due to lobbying of influential quarters. Chewing tobacco and bidi are subject to pay 38 per cent tax, while the rate is 53 per cent for low-brand cigarettes, and 82 per cent for premium brands. This year, the National Board of Revenue (NBR) already received several letters form the MPs, and chairmen of different parliamentary standing committees. The revenue board last year raised the value of Bidi to Tk 5.0 from Tk 3.0. The board cannot raise the tax due to lobbying of some influential quarters. Currently, bidi is subject to pay 20 per cent supplementary duty (SD) and 15 per cent value added tax (VAT). Fazle Rabbi, chairman of the parliamentary standing committee on the government commitments, sent a letter to the finance minister, requesting him to waive taxes on bidi, considering employment of rural women. Another letter, sent by Md Majibar Rahman, chairman of the parliament standing committee on religious affairs ministry, said the government can waive all taxes on bidi, and divert the insignificant amount of tax collected from bidi to cigarette. He also urged the finance minister to include bidi industry under cottage industry, as it is one of the major sources of income of the poor people. The NBR officials said the government could not slap any tax on bidi in the budget for current fiscal, following lobbying of the lawmakers. The MPs claimed that around 2.5 million workers are employed in bidi industry. The government earned Tk 2.65 billion revenue in fiscal 2008-09 from bidi industry, and Tk 51.36 billion from cigarette industry. Dr Sohel Reza Chowdhury, associate professor of the Department of Epidemiology and Research of the National Heart Foundation, said the tax on bidi and low-brand cigarettes should be raised more than that of premium brands, to discourage consumption of the items by low-income people. He said both of the items - bidi and cigarette - are equally hazardous for health, and in some cases, bidi is more harmful than cigarette. "Consumption of low-cost bidi is making the marginal low-income group people more vulnerable to the perils of smoking," he said. The people of the north Bengal region often suffer from burger disease and lose their legs. Children of the area also suffer from various lung diseases, as they directly inhale the tobacco products at the time of preparing bidi. "The government should impose heavy tax on bidi in the budget," he added. According to the findings of Global Adult Tobacco Survey (GATS) 2009, the frequency of smoking is much higher for bidi, compared to cigarette. Overall 65 per cent respondents smoke 10 or more bidis per day, while 44.4 per cent cigarette smokers smoke 10 or more cigarettes per day. GATS advocated raising taxes on all types of tobacco products, and enhancing political commitment to regularly revise and increase tax on tobacco products, including bidi.
The country's lawmakers are actively lobbying to resist imposition of higher tax on bidi in the budget for upcoming fiscal, ignoring its harmful affect on public health and bidi factory workers. Every year a number of lawmakers start lobbying before budget for not imposing any tax on bidi, considering employment of millions of people, mainly in the north Bengal region. The members of parliament (MPs) want to patronise the industry to protect their 'vote-bank', revenue officials and health experts said. According to the health experts, the health cost associated with bidi is very high. Cigarette and bidi should be treated equally in terms of raising tax, as both of the tobacco items are equally harmful for public health, they said. During the last few years, tax rates are steadily increasing on bidi, low-brand cigarettes, and chewing tobacco products (jarda and gul), consumed by low-income group of people, due to lobbying of influential quarters. Chewing tobacco and bidi are subject to pay 38 per cent tax, while the rate is 53 per cent for low-brand cigarettes, and 82 per cent for premium brands. This year, the National Board of Revenue (NBR) already received several letters form the MPs, and chairmen of different parliamentary standing committees. The revenue board last year raised the value of Bidi to Tk 5.0 from Tk 3.0. The board cannot raise the tax due to lobbying of some influential quarters. Currently, bidi is subject to pay 20 per cent supplementary duty (SD) and 15 per cent value added tax (VAT). Fazle Rabbi, chairman of the parliamentary standing committee on the government commitments, sent a letter to the finance minister, requesting him to waive taxes on bidi, considering employment of rural women. Another letter, sent by Md Majibar Rahman, chairman of the parliament standing committee on religious affairs ministry, said the government can waive all taxes on bidi, and divert the insignificant amount of tax collected from bidi to cigarette. He also urged the finance minister to include bidi industry under cottage industry, as it is one of the major sources of income of the poor people. The NBR officials said the government could not slap any tax on bidi in the budget for current fiscal, following lobbying of the lawmakers. The MPs claimed that around 2.5 million workers are employed in bidi industry. The government earned Tk 2.65 billion revenue in fiscal 2008-09 from bidi industry, and Tk 51.36 billion from cigarette industry. Dr Sohel Reza Chowdhury, associate professor of the Department of Epidemiology and Research of the National Heart Foundation, said the tax on bidi and low-brand cigarettes should be raised more than that of premium brands, to discourage consumption of the items by low-income people. He said both of the items - bidi and cigarette - are equally hazardous for health, and in some cases, bidi is more harmful than cigarette. "Consumption of low-cost bidi is making the marginal low-income group people more vulnerable to the perils of smoking," he said. The people of the north Bengal region often suffer from burger disease and lose their legs. Children of the area also suffer from various lung diseases, as they directly inhale the tobacco products at the time of preparing bidi. "The government should impose heavy tax on bidi in the budget," he added. According to the findings of Global Adult Tobacco Survey (GATS) 2009, the frequency of smoking is much higher for bidi, compared to cigarette. Overall 65 per cent respondents smoke 10 or more bidis per day, while 44.4 per cent cigarette smokers smoke 10 or more cigarettes per day. GATS advocated raising taxes on all types of tobacco products, and enhancing political commitment to regularly revise and increase tax on tobacco products, including bidi.