Bangladesh’s National Board of Revenue (NBR) confirmed that no new tax increases on cigarettes will be included in the FY2027 budget, maintaining the current tax structure, which already exceeds 83%. Officials indicated that while prices may be adjusted in line with regional markets, further tax hikes are not under consideration. Industry stakeholders used the pre-budget meeting to highlight the growing threat of illicit trade, prompting authorities to explore new enforcement measures, including the introduction of QR or tracking codes on cigarette packs to verify tax compliance and curb illegal imports.
Tag: tobacco taxes
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Japanese Consumers Facing Double Hit
The first phase of Japan’s tax increases on tobacco products and corporate income will take effect April 1, marking the first phase of a broader revenue plan to finance expanded defense spending, with additional increases planned for October and January 2027. Both conventional cigarettes and heated tobacco products will be affected, with the long-standing tax gap between the two categories set to narrow. The government aims to raise ¥1.3 trillion ($8.2 billion) in fiscal 2027 through staged hikes on tobacco, corporate, and personal income taxes to help fund a ¥43 trillion ($271 billion), five-year defense buildup that began in 2023.
In response to the new corporate taxes, Philip Morris Japan said it will raise prices by ¥40–¥50 (25 to 32 cents) per pack on 50 heated tobacco products from April 1, while Japan Tobacco plans ¥20–¥30 (13 to 19 cent) increases on 37 products. Manufacturers have not yet outlined pricing responses for October’s tax hike.
The Finance Ministry estimates tobacco tax revenue will increase by ¥44 billion ($277 million) in fiscal 2026, ¥116 billion in 2027 ($731 million), and ¥212 billion ($1.3 billion) annually thereafter as additional levies take effect. The measures come as Japan seeks to secure more than ¥9 trillion ($56.7 billion) in defense spending for fiscal 2026, reaching its 2% of GDP target ahead of schedule.
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Wholesaler Indicted in Fraud Scheme
Credit: Postmodern Studio A federal grand jury has indicted the owner of a licensed tobacco wholesale business in Connecticut in connection with a tax fraud scheme.
A 10-count indictment by a New Haven grand jury charged Khawar M. Khokar, 35, with one count of conspiracy, an offense that carries a maximum term of imprisonment of five years; eight counts of wire fraud, each of which carries a maximum prison term of 20 years; and one count of engaging in an illegal monetary transaction, an offense which carries a maximum 10-year term, according to Vanessa Roberts Avery, United States Attorney for the District of Connecticut.
The indictment was returned on May 15. Khokhar appeared Monday before U.S. Magistrate Judge Thomas O. Farrish in Hartford, pleaded not guilty, and was released on a $100,000 bond, Avery said, according to media reports.
According to the indictment and statements made in court, Khokhar operated Smokin’ Wholesale LLC, a Connecticut-licensed tobacco wholesale business that acquired smokeless tobacco and other tobacco products from out-of-state distributors, including businesses in Pennsylvania and Illinois, and sold the products to retail merchants in Connecticut.
For roughly two years beginning around May 2017, Khokhar and Smokin’ Wholesale purchased about $2 million in tobacco products from the distributors, but failed to report accurately to the Connecticut Department of Revenue Services the value of the products imported into the state, and failed to pay to the state the associated tobacco taxes owed.
Through this scheme, Khokhar and others caused Connecticut to suffer a tax loss around $1 million, Avery said.
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Momentum Building for Tobacco Tax Hike
Photo: Taco Tuinstra Momentum is building for higher tobacco duties in Nepal , reports MyRublica.
During a discussion with health reporters on May 10, Health and Population Minister Mohan Bahadur Basnet said he is prepared to increase the tax on tobacco products and spend the money on health services.
While developed countries subject tobacco products to tax rates of more than 70 percent, Nepal is currently taxing at a low percentage, according to Basnet.
Basnet aims to invest the money earned from additional tobacco taxation in government hospitals. Nepal’s budget has struggled in the wake of an economic crisis caused by the Ukraine war and Covid-19.