The Bangladesh Tea Board (BTB) is seeking to increase tea cess, or tax, from the existing rate of 1% to 2%, saying that it will ensure overall development of the country's tea sector.
Currently 1% tea cess is paid by the producers from the sale of all kinds of tea produced in the country.
BTB recently sent a letter to the Commerce Ministry asking to take steps in this regard.
Section 9 of the Tea Act-2016 provides for imposition and collection of up to 10% tea cess from the sale of all kinds of tea produced locally.
BTB member Mohammad Nurullah Nuri said: "Currently, we collect only 1% tea cess from all kinds of tea sold; though the existing law provides that tea cess up to 10% will be imposed."
He also said that BTB research work for overall development of the tea industry would be expedited if tea cess is increased to 2% from 1% as per the proposal.
According to the BTB, there has been no move to increase tea cess, considering the overall situation, since formulation of the act.
The country's tea production has been increasing gradually but tea cess has not been increased accordingly; as a result, income of the BTB has not increased as well, said the letter.
Besides, salary and allowances of the BTB staff have been nearly doubled in accordance with the National Pay Scale-2015.
Income of the state-run tea board needs to be increased to launch a modern tea cultivation method, introduce improved agri machinery, fertilizer, chemical, encourage small producers and take a multiple plan, said the sources.
BTB collected Tk18.5 crore in the fiscal year 2021-22 but it spent Tk30.7 crore as operation cost; consequently, its deficit stood at Tk12.2 crore.
Currently, BTB can meet its total operation cost up to 75% from the collected tea cess.
It is claiming to face difficulties in meeting the remaining 25% operation cost from the other sources, including levy, building rent, deposit interest etc.
