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Bangladesh uncovers tax evasion in smokeless tobacco industry

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Union supported Bangladesh files law suits against four chewing tobacco companies for tax evasion. These were uncovered during an investigation of jorda and gul production factories, led by the Custom Intelligence and Investigation Directorate.

The National Board of Revenue in Bangladesh recently filed law suits against four chewing tobacco companies for tax evasion. These were uncovered during an investigation of jorda and gul production factories, led by the Custom Intelligence and Investigation Directorate. The companies involved in the law suits were named in Share Biz, a news website.

Since 1 May 2016, The Union has technically and financially supported Dhaka International University’s Tobacco Control and Research Cell (TCRC) monitor the implementation of graphic health warnings (GHW) on tobacco products across the country. In Bangladesh, graphic health warnings have been implemented since 19 March 2016.

Through this extensive monitoring the TCRC team also identified cases where smokeless tobacco companies may have committed tax evasion. The TCRC provided a list of these companies to the Chairman of the National Board of Revenue.

The TCRC team conducted a large compliance survey to monitor graphic health warnings compliance in two cycles. In the first cycle, the team covered 50 districts, which included more than 2,000 tobacco brands and 7,502 tobacco products were collected for monitoring.

In the second cycle, the team covered 24 districts out of 64 to examine compliance regarding GHW printing, its quality and content, and compliance to the rotational period.

After monitoring the implementation TCRC team informed law enforcing agencies, the National Board of Revenue and other government officials of the graphic health warning violations they identified.

Syed Mahbubul Alam, Technical Advisor at The Union, said: “This information came out as a result of TCTR's research. We welcome the National Board of Revenue's move to find out the revenues of the jorda industry. TCRC will actively support the government's law-abiding programme in the coming days.”