Tea Board seeks to raise tea cess to 2.0pc

State-run tea board seeks to increase tea cess to 2.0 percent from the existing rate of 1.0 percent to ensure overall development of the country's tea sector, sources said.

Currently, from the sale of all kinds of tea produced in the country, 1.0 percent tea cess has to be paid by the producers.

Bangladesh Tea Board (BTB) has recently sent a letter to the commerce ministry asking for taking steps in this regard.

The section 9 of the Tea Act-2016 provides for imposition and collection of up to 10 percent tea cess from the sale of all kinds of tea produced locally.

When contacted, BTB member Mohammad Nurullah Nuri said, "Presently, we collect only 1.0 percent tea cess from all kinds of tea sold; though the existing law provides that tea cess up to 10 percent will be imposed."

He also said BTB research work for overall development of the tea industry would be expedited if tea cess is increased to 2.0 percent from 1.0 percent 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, says 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 machineries, fertiliser, chemical, encourage small producers and take a multiple plan, said the sources.

BTB collected Tk185 million in the fiscal year 2021-22 but it spent Tk307 million as operation cost; consequently, its deficit stood at Tk122 million.

Currently, BTB can meet its total operation cost up to 75 percent from the collected tea cess.

It faces difficulties in meeting the rest 25 percent operation cost from the other sources, including levy, building rent, deposit interest etc.