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Tag: Bangladesh

  • Bangladesh Uncovers Major Cigarette Tax-Evasion Scheme

    Bangladesh Uncovers Major Cigarette Tax-Evasion Scheme

    Bangladesh’s National Board of Revenue (NBR) says a raid on United Tobacco Industries Limited in Ishwardi, Pabna, uncovered the equivalent of Tk 90 million ($738,000) in tax-evaded products. Investigators said that despite the company having VAT registration, it was secretly producing and marketing cigarettes without showing formal production activities.

    Authorities seized 634,590 cigarettes carrying fake banderoles—worth more than Tk 3.8 million ($31,000)—linked to nearly Tk 2.9 million ($24,000) in evaded government revenue. They also recovered 1.03 million unused fake banderoles, which the NBR says could have enabled more than Tk 85 million ($697,000) in additional tax losses.

    All materials have been confiscated, legal action is underway, and the VAT Commissionerate will tighten oversight of the company’s operations, the NBR said.

  • PMI Gets Approval to Produce Nicotine Pouches in Bangladesh

    PMI Gets Approval to Produce Nicotine Pouches in Bangladesh

    Philip Morris received approval from the Bangladesh government to open a factory in Narayanganj to produce nicotine pouches. The project, granted by the Bangladesh Economic Zones Authority (Beza), involves an initial investment of $5.8 million with a planned annual production of 536.3 million units, with operations required to start within a year.

    The news sparked opposition from anti-tobacco campaigners who are calling for the revocation of the approval. However, Beza described the pouches as “anti-nicotine” products and noted there is no explicit ban on their production or export, despite a government import ban on e-cigarettes and other electronic nicotine delivery systems.

    Authorities are reviewing environmental and regulatory compliance, with Philip Morris Bangladesh seeking clearance from the Department of Environment.

  • Seminar Calls for THR Policy in Bangladesh

    Seminar Calls for THR Policy in Bangladesh

    Speakers at a seminar in Dhaka urged the Bangladesh government to adopt a practical tobacco harm reduction policy to cut smoking-related health risks. The event, titled “Policy for Progress: Towards Harm Reduction 2.0” and organized by Policy Exchange Bangladesh and the Bangladesh Harm Reduction Foundation, compared Bangladesh’s current approach with successful global models such as New Zealand and Sweden.

    Former World Medical Association secretary-general Dr. Delon Human said that New Zealand cut its smoking rate by nearly half by officially recognizing alternatives like vaping, while Bangladesh’s progress has been slower due to a lack of such policies. Other speakers warned that bans on electronic nicotine products have instead fueled illicit trade, depriving consumers of regulated, safer options and reducing tax revenue.

    Participants, including Timothy Andrews, director of consumer issues for the Tholos Foundation, and Schumann Zaman, president of the Bangladesh Electronic Nicotine Delivery System Traders Association, called for balanced regulation rather than prohibition, stressing that harm reduction strategies and legal frameworks could help Bangladesh transition to less harmful products and achieve meaningful progress in public health.

  • Bangladesh Pushes for Tobacco-Free Generation

    Bangladesh Pushes for Tobacco-Free Generation

    Tobacco industry stakeholders are closely monitoring calls from Bangladeshi experts and advocacy groups to amend the country’s tobacco control law with the stated goal of creating a “tobacco-free generation.” While public health advocates link tobacco use to rising rates of non-communicable diseases and urge stricter restrictions, the industry cautions that sweeping amendments could have wide-ranging economic and social impacts. Bangladesh’s tobacco sector supports millions of livelihoods, from farmers to small retailers, and contributes significantly to government revenue through taxes and export earnings. Industry representatives stress that any legal reforms must balance health objectives with the realities of employment, trade, and fiscal stability.

    From the industry’s perspective, an outright tightening of laws—such as bans on e-cigarettes and vaping—risks pushing consumers toward illicit markets, undermining both health and tax collection goals. The sector emphasizes the importance of pragmatic regulation, transparency, and meaningful dialogue between policymakers, public health groups, and industry stakeholders.

  • Bangladesh’s Illicit Cigarette Market Jumps 31%

    Bangladesh’s Illicit Cigarette Market Jumps 31%

    Bangladesh’s illicit tobacco trade has surged sharply, with illegal cigarettes now making up 13.1% of the market, according to a new study by Insight Metrics. The report estimates more than 832 million illicit sticks enter circulation each month, a 31% increase from last year, dominated by “Illicit Whites” with fake or reused tax stamps, alongside smuggled foreign brands such as Oris, Mond, and Esse.

    The government’s annual revenue loss, officially reported at ৳20 billion ($164 million), is likely far higher according to critics as illegal operators bypass cigarette import duties of nearly 600%. Dhaka and Chattogram are identified as key hotspots, with Oris alone moving an estimated 50 million sticks per month. Despite the seizure of over 610 million illicit cigarettes in 16 months, the study suggests enforcement captures only a fraction of the trade.

    Experts warn that steep taxes and price hikes on legal products are driving smokers toward cheaper, unregulated cigarettes. They stress that without coordinated action between government and industry, the booming black market will continue to undermine revenue collection, weaken regulation, and fuel long-term public health risks.

  • Bangladesh: Couple Jailed for Fake Bidi Band-Rolls

    Bangladesh: Couple Jailed for Fake Bidi Band-Rolls

    A court in Rangpur, Bangladesh, on Wednesday (August 27), sentenced a couple to 14 years in prison for possessing counterfeit bidi band-rolls, a key tax stamp for the country’s cheap cigarette market. The 28-year-old man and his 23-year-old wife were arrested in January 2021 with a large haul of fake rolls. Judge Md Moshiur Rahman Khan also fined each Tk 10,000 ($7,200), with two months’ additional jail if unpaid.

    Authorities said the case highlights ongoing enforcement against counterfeit tobacco products, which undermine government revenue and fuel the illicit trade.

  • Bangladesh Customs Busts Cigarette Paper Smuggling Racket

    Bangladesh Customs Busts Cigarette Paper Smuggling Racket

    Customs officials in Bangladesh seized two consignments of undeclared cigarette paper falsely labeled as straw paper and paper ribbon, exposing a racket that could cost the government hundreds of crores in lost revenue. Lab tests by BUET, Dhaka University, and Khulna University of Engineering and Technology confirmed the shipments contained cigarette paper, not the reported goods.

    Officials said Dhaka-based RM Enterprise and Smart Move attempted to clear the goods despite laboratory findings, allegedly lobbying senior revenue officials. If released, the consignments would have deprived the state of Tk 1.7 crore ($139,000) in duties and up to Tk 135 crore ($11.1 million) in VAT from untaxed cigarettes.

    Records show RM Enterprise previously imported 489 tons of raw materials under suspicious declarations, with potential tax losses estimated at Tk 4,000 crore ($329 million). Both firms were found to be operating through non-existent or front addresses.

    Customs officials have blocked the release of the seized shipments and vowed further investigation into past imports.

  • BAT Bangladesh Forced to Relocate Headquarters

    BAT Bangladesh Forced to Relocate Headquarters

    British American Tobacco (BAT) Bangladesh will move its registered office from Mohakhali to Ashulia by mid-July 2025, following a Supreme Court ruling that rejected its appeal to extend the lease on its Mohakhali premises. The company must vacate the site it has leased from the Dhaka Cantonment Board since 1964.

    The relocation also involves shutting down BAT’s Dhaka factory, though operations will continue at its Savar, Manikganj, and Kushtia facilities. A spokesperson acknowledged potential disruption but emphasized preparations were in place to minimize the impact and protect shareholder interests. BAT Bangladesh earned Tk9,597 crore in Q1 2025.

    The company had been leasing the factory on 30-year terms, with a maximum duration of 90 years. BAT applied for the final renewal, but was denied by the board, which initiated the legal proceedings. Environmental groups had long called for the factory’s relocation, citing pollution concerns.

  • Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s Unchanged Tobacco Taxes Draw Criticism 

    Bangladesh’s interim government’s proposed national budget for Fiscal Year 2025-26 (July 2025-June 2026) has drawn criticism from anti-tobacco activists for keeping cigarette prices and taxes unchanged across all tiers. Finance Adviser Dr. Salehuddin Ahmed presented the proposed budget, but activists suggest the decision will deprive the government of at least Tk20,000 crore ($2.4 billion) in additional revenue while making cigarettes more accessible to young smokers.

    Activists urge the government to increase cigarette prices across all tiers, particularly by merging the low and medium tiers—which account for 80% of the market—into a single category with a minimum retail price (MRP) of Tk90 ($1.08) for 10 sticks.

    The budget also leaves bidi prices unchanged for the sixth consecutive time, with supplementary duty remaining static for the 10th straight year. Similarly, taxes on smokeless tobacco products such as jarda and gul remain unaltered, sparking concerns among health advocates.

    While the budget raises the advance tax on cigarette manufacturers from 3% to 5% and increases supplementary duty on imported cigarette paper from 150% to 300%, activists argue these measures fall short of ensuring meaningful public health protection.

  • Bangladesh: Anti-Tobacco Advocates Want More Taxes

    Bangladesh: Anti-Tobacco Advocates Want More Taxes

    Anti-tobacco organizations in Bangladesh said mid-year tobacco tax additions advanced public health protections and created the potential for additional government revenue. Though not planned in the original budget, the adjustments raised retail prices of cigarettes on a tiered scale between 8% and 20%, and imposed a uniform supplementary duty rate of 67% on all tiers.

    Abdullah Nadvi, research director of Unnayan Shamannay, called for the government to not only maintain the taxation but to bolster it 2025-26 fiscal budget, saying the government could collect an additional 40% in tobacco revenue without changing the duty rate.

    Dr. Mahfuz Kabir, research director at BIIISS, said that effective taxation could increase government revenue from cigarettes by 11% to 28%. He warned that failing to adjust cigarette prices with inflation has led to a steady rise in sales in recent years.