The National Board of Revenue (NBR) Chairman, Md. Abdur Rahman Khan, has stated that no new duties or tax increases will be imposed on cigarettes in the upcoming fiscal year’s budget. He also noted that there is currently no scope to raise the total cigarette tax above 83%.
The remarks were made during a pre-budget discussion with seven tobacco sector organizations held on Monday (April 27) at the NBR building in Agargaon, Dhaka.
However, the chairman said cigarette prices may still be adjusted in line with market conditions in other South Asian countries. He also indicated that the existing tax structure is likely to remain unchanged after reviewing industry feedback.
During the meeting, the National Cigarette Manufacturers Association urged strict measures to curb illegal cigarette imports, calling for a “war-like” initiative against smuggling. In response, the NBR chairman said steps are being taken to introduce special codes, such as QR or barcodes on cigarette packets, to ensure tax verification and reduce illegal trade.
Industry stakeholders, including British American Tobacco Bangladesh, highlighted illegal cigarettes as a major risk to the sector. At the same time, Japan Tobacco argued that Bangladesh already has a high tax burden and opposed further increases.
Meanwhile, telecom sector representatives raised separate concerns, including demands to remove VAT on SIM replacement and calls for faster implementation of the National Equipment Identity Register (NEIR) to control illegal mobile imports.
The NBR assured that all proposals from business groups would be reviewed in the upcoming budget process.
