Tobacco Industry Interference in South Asia - August 2022
Contents
Background
This is the third of the monthly page series that summarises tobacco industry interference and their activities reported during the previous month in the South Asian region. When relevant, this series will feature the activities of the cannabis industry as well, as it is majorly backed by the tobacco industry. South Asia includes eight (8) countries, namely, Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. This page is a compilation of the data from the investigative research findings of CCT| Centre for Combating Tobacco (CCT), in partnership with the [www.sarccct.org South Asian Regional Consortium Centre for Combating Tobacco (SARC-CCT)]. This page will be continuously updated as and when incidents related to the respective month are reported.
The Country Summary
Table 1 summarises tobacco and cannabis industry interference and activities reported according to the country during the month of August 2022.
Table 1: Summary of reported tobacco and cannabis industry interference
| Reported Countries | Tobacco Company | Number of Incidents | |
|---|---|---|---|
| Afghanistan | - | 0 | |
| Bangladesh | British American Tobacco (BAT) Bangladesh | 3 | |
| Vape traders of Bangladesh | 1 | ||
| Bangladesh Electronic Nicotine Delivery System Traders Association (BENDSTA) | 1 | ||
| Bhutan | - | 0 | |
| India | ITC Limited India | 7 | |
| Maldives | - | 0 | |
| Nepal | - | 0 | |
| Pakistan | - | 0 | |
| Sri Lanka | Ceylon Tobacco Company (CTC) | 2 | |
The details of the reported incidents are mentioned below:
Afghanistan
No incidents reported for this month.
Bangladesh
- Vape traders in Bangladesh reportedly promoted vape products in social media targeting youth on Friendship day (Image 1).[1][2]
- Sale and use of the vaping products are not banned by the Smoking and Usage of Tobacco Products (Control) Amended Act 2013 in Bangladesh. As reported by the local tobacco control advocates, the process to develop relevant regulations for such a ban is currently underway.
Image 1: Vape traders promoting vaping products in social media targeting youth[2]
- Bangladesh Electronic Nicotine Delivery System Traders Association (BENDSTA), in collaboration with Intellectual Property Association of Bangladesh (IPAB) and National Association of Small and Cottage Industries of Bangladesh (NASCIB), are reportedly campaigning against the government initiative to amend the tobacco control law. They organised a press conference and an alleged ‘policy dialogue’ highlighting potential loss of government revenue and livelihoods as a result of these ammendements. The proposed amendments include a ban on Cooperate Social Responsibility (CSR) activities of the tobacco companies, and a ban on e-cigarettes, sale of loose cigarettes and sale of tobacco products by mobile vendors.[3]
- British American Tobacco Bangladesh (BATB) has sent a letter to Large Taxpayers Unit (LTU) of the National Board of Revenue on 25th August 2022 requesting to interfere in the proposed amendments of tobacco control law on behalf of BATB. It further mentioned their contribution to the economy in the financial year 2021-2022, and their displeasure for not inviting BATB or Bangladesh Cigarette Manufacturers Association (BCMA) as stakeholders in the process to develop the amendments. As reported by media, a group of ‘tobacco harm reduction experts’ have sent a letter to the government to reconsider the proposed ban on vaping products.[4][5][6]
- Media reported that British American Tobacco Bangladesh (BATB) was awarded by the Income tax wing of the National Board of Revenue recognising them as the largest income tax payer in Bangladesh under the manufacturing category for the financial year 2021-2022. The award was handed over by Shaheen Akhter, a member of tax administration and human resource management of National Board of Revenue.[7]
- Tobacco cultivation and tobacco products negatively impact on economic development globally by causing premature deaths and tobacco induced diseases including cancers and heart and lung diseases. Tobacco industry receiving awards promotes their image while ignoring the harm they cause on economy and health.
- British American Tobacco Bangladesh (BATB) distributed conducted a nationwide sapling (other than tobacco) distribution programme as a Corporate Social Responsibility (CSR) initiative titled ‘Bonayan’. The series of sapling distribution programmes was organised in collaboration with the Department of Environment with the participation of Member of Parliaments, police officers, agricultural officers and other high rank officials.[8][9]
- A plethora of scientific evidence from around the globe reveal that tobacco smoking, cultivation and manufacturing processes negatively impact the environment; the range of environmental harms including deforestation, water pollution and global warming. Article 5.3 of Framework Convention on Tobacco Control (FCTC) recommends against governments having any partnership with the tobacco industry and also recommends to denormalise and regulate the CSR activities carried out by the tobacco industry.
Bhutan
No incidents reported for this month.
India
- ITC Limited India was repeatedly showcased in media on various activities related to celebration of the 75th Independence Day in India as follows:
- ITC Limited India launched a short film to celebrate the contribution of freedom fighters celebrating ‘Azadi ka Amrit Mahotsav’. Azadi ka Amrit Mahotsav’ is a series of events rganized by the State Ministry of Culture. **‘Har Ghar Tiranga’ (Tricolors in every home) was a campaign under the Azadi Ka Amrit Mahotsav initiative to encourage people to decorate every home with the three colours of the flag and ‘to mark the 75th year of India’s independence’.[10]
- ITC Grand Central hotel was decorated with tricolor hues and fresh flowers. And some other ITC hotels also conducted various promotion activities such as organising special buffets and announcing special offers for food and beverages. ITC hotels are owned by ITC Limited India, the main tobacco company in India, which had diversified its business into other ventures.[11].[12][13]
- Media reported that ITC Limited India plans to conduct a series of activities engaging farmers, vendors, employees, partners and communities at factories, offices and outlets to celebrate the Independence Day.[14]
- ITC Limited India partnered with Indian Railways to celebrate the 75th Independence Day. Media reported that Guntur railway station was decorated with the three colours, and various activities were conducted.[15]
- Article 5.3 of Framework Convention on Tobacco Control (FCTC) recommends the governments not to have any partnership with the tobacco industry. Such partnerships have a fundamental irreconcilable conflict of interest with public health.
- ITC Limited India announced the ITC Narmada at Ahmedabad as the first Leadership in Energy and Environmental Design (LEED) Platinum certified hotel in Gujarat. LEED Platinum certification is a rating system that expresses how efficiently a building is designed and operated and is awarded by the U.S. Green Building Council, a non-profit US based organisation, whose work is related to building design and construction. Media reported that Chief Minister of Gujarat, Shri Bhupendra Patel declared open the hotel (Image 2). [16]
- Article 5.3 of Framework Convention on Tobacco Control (FCTC) recommends the governments not to have any partnership with the tobacco industry. Such partnerships have a fundamental irreconcilable conflict of interest with public health.
Image 1: Vape traders promoting vaping products in social media targeting youth[17]
- ITC Limited India announced that the net profit for the second quarter of the 2022 as INR 4,169.38 crore (approx. USD 509.3 million), which was a 38.35% growth compared to same period of the year 2021. It further reported that revenue from the cigarettes was INR 6,608 crore (approx. USD 807.2 million), a growth of 29% compared to same quarter of 2021. [18]
- ITC Limited India mentioned in a media statement that they hope to continuously contribute to counter the illicit trade and “it was encouraged by the stable tobacco tax environment and actions by India’s law enforcement agencies”. [19]
- Tobacco companies are known for their involvement in the illicit trade in many parts of the world. Please visit the pages Tobacco Industry Tactics to Evade Tax and Ceylon Tobacco Misleading Shareholders: The Illicit Cigarettes Issue for more details.
- High Court for the State of Telangana rejected the petition filed by ITC Limited India against the state government which requested to cancel the tax notice issued by the tax officer. Luxuries Tax Act was amended on 1st August 1996 including tobacco and alcohol products under its purview in India. However, in 2005, the Supreme Court issued an order stating collecting luxury tax on cigarettes is illegal following a petition by the tobacco industry. The Tax officer has issued a notice to ITC to pay INR 63 crore (approx. USD 7.7 million) as luxury tax during the interim period. [20]
- Media reported that Sanjiv Puri, the Chairman of ITC Limited India is the Jury chair of the Indian Digital Marketing Awards (IDMA) 2022. IDMA is organised by the exchange4media group “to recognize, celebrate and encourage the work being done in the digital media space” as stated in their website.[21]
Nepal
No incidents reported for this month.
Maldives
No incidents reported for this month.
Sri Lanka
- Ceylon Tobacco Company (CTC) announced a growth of turnover by 41% to Rs. 42.3 billion (approx. USD 120 million) during the second quarter of year 2022. The profit after tax was recorded as Rs. 3.4 billion (approx. USD 9.5 million) during the second quarter. It was reported as 3.9 billion (approx. USD 11 million) for the same period in 2021.[22]
Image 3: Media reporting the CTC’s decreased profit during the second quarter[22]
- Colombo Stock Exchange organised a forum titled ‘Beyond Basics: Setting Standards for Climate Disclosure and Action’ on 9th August 2022 for “an in-depth understanding of the fundamentals and best practices of climate reporting”. Media reported that Paula Hermogenes Gomes, Circular Economy Manager of the British American Tobacco (BAT), and Imanthi Perera, Corporate Affairs Manager of the Ceylon Tobacco Company (CTC), will be among the speakers at the event. [23]
Other Pages in the Series
- Tobacco Industry Interference in South Asia - June 2022
- Tobacco Industry Interference in South Asia - July 2022
TobaccoUnmasked Resources
- British American Tobacco (BAT)
- ITC Limited India
- Ceylon Tobacco Company (CTC)
- Framework Convention on Tobacco Control (FCTC)
- FCTC Article 5.3
Notes
- ↑ Tobacco Industry Watch BD. Friendship Day Exploited to Promote Vaping: Youth Targeted, July 2022, accessed September 2022
- ↑ 2.0 2.1 Facebook. VoV Bangladesh, 6 August 2022, accessed September 2022
- ↑ Tobacco Industry Watch BD. Public Health on Top, July 2022, accessed September 2022
- ↑ Tobacco Industry Watch BD. Public Health on Top, August 2022, accessed September 2022
- ↑ The Daily Janakantha. BATB Opposing Tobacco Law Amendment, 18 September 2022, accessed September 2022
- ↑ TBS Report. International harm reduction experts urge government to rethink proposed vape ban, 21 August 2022, accessed September 2022
- ↑ TBS Report. BAT Bangladesh named among top income taxpayers for FY21-22, 2 August 2022, accessed September 2022
- ↑ Facebook. Bonayan, 24 August 2022, accessed September 2022
- ↑ Facebook. Bonayan 2022, August 2022, accessed September 2022
- ↑ exchange4media. ITC launches short film to celebrate the spirit of India@75, 18 August 2022, accessed September 2022
- ↑ S Murdeshwar. ITC Grand Central Parel christened as The Gothic Hotel of Mumbai Celebrates 75th Independence day #Azadi ka Amrit Mahotsav, 13 August 2022, accessed October 2022
- ↑ Hotelier India. ITC Kohenur Celebrates 75 years of independence, 14 August 2022, accessed October 2022
- ↑ DT Next. Independence Day offers at Chennai’s star hotels, 15 August 2022, accessed October 2022
- ↑ Punjab News express. ITC launches integrated initiatives to support Har Ghar Tiranga campaign, 13 August 2022, accessed October 2022
- ↑ The Times of India. Andhra Pradesh: Guntur railway station becomes cynosure of all eyes, 16 August 2022, accessed October 20022
- ↑ Hotelier India. ITC Hotels unveils its 12th property in Gujarat with the iconic ITC Narmada, 10 August 2022, accessed October 2022
- ↑ The Indian Express. High food inflation impacted FMCG sale volumes, says ITC chairman, 10 August 2022, accessed October 2022
- ↑ A Mudgill. ITC Q1 Results: Profit jumps 38% YoY to Rs 4,169 crore, beats estimates, 1 August 2022, accessed October 2022
- ↑ Tobacco reporter. Cigarette Business Boosts ITC’s Quarter, 6 August 2022, accessed October 2022
- ↑ The New Indian Express. Telangana High Court dismisses ITC Ltd’s plea on luxury tax demand notice, 13 August 2022, accessed October 2022
- ↑ exchange4media. IDMA 2022: Jury led by ITC’s Sanjiv Puri picks the best from 1,200 entries, 4 August 2022, accessed October 2022
- ↑ 22.0 22.1 Daily FT. Ceylon Tobacco 2Q topline up, profit down, 15 August 2022, accessed October 2022
- ↑ Ada derena. CSE’s Third ‘Beyond Basics’ Forum to focus on Fundamentals of Climate Disclosure and Action, 1 August 2022, accessed October 2022
