AST Beverage evades tax showing energy drinks as soft drinks:Daily Sun

  AST Beverage Limited, an energy drink manufacturing company of the country, is allegedly evading VAT (Value Added Tax) in shroud and unfair ways, depriving the government of huge revenue, reports banglanews24.com. The company is marketing two products named Royal Tiger Energy Drink and Black Horse being declared carbonated beverage (soft drinks) since long on the local market though the products
are not actually soft drinks. Sources concerned said the National Board of Revenue (NBR) through a gazette notification (No: 171-law/2013/675-VAT) has fixed 15 percent supplementary duty on soft drinks and 25 percent on energy drinks. Considering Royal Tiger Energy Drink and Black Horse as soft drinks, the AST Beverage in 2011-12 fiscal year gave 15 percent supplementary duty to the government. During the time, the company paid tax worth Tk 37 crore to the government exchequer. But BSTI, the only quality control agency of the government, did not certify Royal Tiger Energy Drink and Black Horse of AST Beverage as soft drinks. According to a report of BSTI, the level of main ingredients of the two soft drinks— sodium benzoate and caffeine—is fouand alarmingly high. The quantity of caffeine and sodium benzoate in Royal Tiger Energy Drink is 276 milligram and 170 milligram per litre respectively. But BSTI said the level of chemicals will be 145 milligram and 160 milligram per litre respectively for the two products of AST Beverage. Also the company mixes 177 milligram caffeine and 244 milligram sodium benzoate per litre respectively in the Black Horse product. Actually, the AST Beverage is declaring energy drinks as soft drinks in a bid to evade tax. Sources said caffeine is a sex-stimulant chemical which human body can afford 160 milligram per litre. Human body will be affected if it crosses the level. Besides, caffeine is one of the main drugs among 11 ingredients. Talking to banglanews24.com, BSTI Assistant Director Golam Baki said, “Soft drinks which contain alcohol and high-level of caffeine cannot be said carbonated beverage. It can be said energy drinks.” He said, “BSTI is maintaining a standard for carbonated beverage. But in the field of energy drinks, there is no standard of BSTI.” When contacted, Senior Scientist of Institute of Epidemiology, Disease Control and Research (IEDCR) Dr Monir said, “If human body consumes high-level of sodium benzoate, there is a possibility of causing stomach problem, kidney failure or ulcer.” The IEDCR scientist also said, “Sodium benzoate is one kind of preservative. It may destroy bacteria that helps digest. A person gradually loses digestion power for consuming it.” Large Taxpayer Unit (LTU) sources said soft drinks and energy drinks were not defined under VAT Act/rules/circular/general order. Even there is no explanation and analysis on this issue. Taking this opportunity, the AST Beverage is giving tax on soft drinks though the two products are energy drinks. In production level, the company declares price, including 15 percent supplementary duties. Sources said AST Beverage brought the two drinks item named Royal Tiger Energy Drink and Black Horse in a bid to compete with other products on the market. After some time, the products have gained popularity among the youths of the country. A high official of LTU said, “The LTU authorities have no power to declare illegal any product which is bad for people’s health.” “When a company received permission from the BSTI and Health Ministry for marketing any product, then we used to give approval for announcing the price of goods and monitoring the taxes matter,” the LTU official said. The official also said, “AST Beverage is making both products by mixing overdose of caffeine and sodium benzoate in it.” Courtesy: banglanews24.com