Rising influx of illegal cigarettes curbed tobacco sector revenue in FY25: NBR chairman
He has blamed the lack of enforcement of the law at the field level for the drop in revenue.
Despite tax and price hikes, the government's revenue from the tobacco sector decreased in FY2024-25 due to the influx of illegal cigarettes and illegitimate local production, National Board of Revenue (NBR) Chairman Abdur Rahman Khan has said.
"We increased the tobacco tax up to 83% and raised prices last January, which was expected to generate an additional Tk10,000 crore in revenue from this sector. However, revenue has declined instead of increasing -- mainly due to the proliferation of illicit and illegally produced cigarettes," he said today (4 August).
Addressing a seminar, titled "Activities Taken in the Budget for the Fiscal Year 2025-26 Regarding Income Tax, VAT, and Customs", at the NBR headquarters at Agargaon, Khan blamed the lack of enforcement of the law at the field level for the revenue drop.
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He also admitted shortcomings in customs enforcement, especially at airports, in preventing the illegal entry of mobile handsets.
However, he added that the authorities are working to ensure that no illegal or untaxed mobile handsets enter the market. The Bangladesh Telecommunication Regulatory Commission (BTRC) is currently developing software to detect illegal handsets.
"The project to develop this software has been underway for a long time, but it has still not been implemented. I don't know why," he said, adding, "Once the project is implemented, the number of illegal mobile phones entering the country will decrease."
Responding to a journalist's question, the NBR chairman clarified, "The government has not provided any special privileges or benefits to Grameen Bank."
Finance Adviser Salehuddin Ahmed attended the programme as the chief guest. Economic Reporters Forum President Doulot Akter Mala also spoke at the event, among others.
