he National Board of Revenue (NBR) has accused British American Tobacco Bangladesh (BAT) of evading approximately Tk 80.31 million in VAT, supplementary duty, and surcharge by selling 16.7 million cigarette packs stockpiled before the 2026–27 budget at higher post-budget prices.

The NBR’s Large Taxpayers Unit (LTU) found that cigarettes stored before the June 11 budget were later sold at Tk 2–50 more per pack, depending on the brand, without paying the applicable taxes on the increased value. The alleged shortfalls were identified across 11 BAT warehouses, with major amounts found at Tejgaon, Mir Ashulia, Chattogram, and the FG Warehouse. The LTU has issued BAT a show-cause notice demanding payment of the alleged Tk 80.31 million. BAT’s external communications manager did not respond to requests for comment.

The issue is part of a long-running practice allegedly followed by cigarette companies for years. NBR instructions require companies to introduce new-price cigarette packs soon after the annual budget and place new-price stickers on pre-budget stock. However, companies including BAT have allegedly continued selling old-stock cigarettes at higher prices without properly paying taxes on the additional value, potentially causing billions of taka in tax losses over the years. The issue has been investigated for several years. A July 14, 2022 report highlighted allegations that BAT was selling old-stock cigarettes at new prices and evading substantial tax revenue.

The latest NBR investigation, reported by journalist Rahmat Rahman of Jatiyo Arthoniti on September 13, 2026, has provided specific evidence of Tk 80.31 million in alleged revenue evasion during the current budget cycle.

Details of Jatiyoarthoniti story;

” The National Board of Revenue (NBR) has alleged that British American Tobacco Bangladesh (BAT) evaded Tk 8.03 crore (Tk 80.31 million) in VAT, supplementary duty, and surcharge by selling cigarettes from pre-budget stocks at higher post-budget prices.

On June 22, 2026, the Large Taxpayers Unit (LTU) instructed BAT to submit information on cigarette stocks held in its declared warehouses through the e-VAT system. BAT requested 30 days but was given seven. Although it submitted a statement on July 7, it did not provide information on the prices at which the cigarettes were supplied to dealers/distributors or the amount of revenue paid.

NBR regulations require cigarette manufacturers to pay VAT, supplementary duty, and surcharge based on the applicable maximum retail price at the time of supply from the factory. The regulations also prohibit cigarettes from being sold at prices above the prescribed price levels. A new SRO issued on June 7, 2026 further stipulated that the applicable taxes must be paid at the production stage and that cigarettes cannot be sold at prices exceeding the maximum retail price.

According to the LTU, the new cigarette prices and corresponding taxes became effective on June 11, the day the 2026–27 budget was announced. Therefore, cigarettes that had already been stockpiled before the budget but were sold after June 11 at the increased prices were subject to VAT and supplementary duty on the additional value.

The LTU’s warehouse-wise assessment found that BAT sold 16,773,697 packs from pre-budget stocks at higher prices. The alleged tax evasion included:

The cigarettes were reportedly sold Tk 2 to Tk 50 above their pre-budget prices, depending on the brand. Benson variants were sold up to Tk 50 higher, Gold Leaf up to Tk 40 higher, Capstan Tk 40 higher, Star up to Tk 12 higher, and Lucky Strike Tk 8 higher.

Overall, NBR estimates that BAT sold 1.67 crore pre-budget cigarette packs at increased prices and thereby avoided Tk 8,03,11,784 in VAT, supplementary duty and surcharge. The LTU has recently issued BAT a show-cause notice with a demand for payment of the allegedly evaded revenue.

BAT’s Manager for External Communications, Bayezid Zowarder, was contacted for comment but did not answer the phone or respond to a WhatsApp message seeking his response.”

https://jatiyoarthoniti.com/2026/09/13/bietir-biruddhe-8-koti-taka-rajsw-fannkir-ovizog?fbclid=IwY2xjawUVyUFwZG9mBWV4dG4DYWVtAjEwAGJyaWQRMTJWS1IyRFl5VWNndlVsZlNzcnRjBmFwcF9pZBAyMjIwMzkxNzg4MjAwODkyAAEemAbYUTXL5guKdUPiYlsoSDWV7vA3NEhAVtU2z0d3NLhicU4h-EEd-4Z9HxQ_aem_aOk6re8K4sMrfp7AuEGsJQ