National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan has said that no new duty or tax increase will be made on cigarettes in the next fiscal year's budget.
He also said that there is currently no scope to impose more than 83% tax on cigarettes.
However, the price may be revised considering the market prices of other South Asian countries.
He said these at a pre-budget discussion held with seven organizations of the tobacco sector at the NBR building in Agargaon in the capital on Monday (April 27).
After listening to various demands of the business organizations in the meeting, the NBR chairman indicated that the tax structure will remain unchanged.
In the discussion, the National Cigarette Manufacturers Association demanded strict action to stop the import of illegal cigarettes.
On behalf of the organization, Sheikh Shabab Ahmed, head of corporate affairs and legal department of Abul Khair Group, said that a virtual 'war' declaration is necessary to prevent illegal imports.
In response, the NBR chairman said that initiatives are being taken to add special codes (Air Code/QR Code) to cigarette packets to prevent illegal trade, so that tax payment can be verified.
In the meeting, British American Tobacco Bangladesh mentioned illegal cigarettes as a major risk in this sector. At the same time, Japan Tobacco pointed out that Bangladesh already has high tax rates and proposed not to increase taxes again.
On the other hand, the Association of Mobile Telecom Operators of Bangladesh, an organization in the telecommunications sector, demanded the withdrawal of VAT imposed on SIM card replacement.
The organization's secretary general Mohammad Zulfikar said that if a SIM is lost, a VAT of Tk300 has to be paid to get a new SIM, which is being considered as double taxation.
In addition, the Mobile Phone Industry Owners Association of Bangladesh demanded the rapid implementation of the National Equipment Identity Registrar (NEIR) to stop illegal and unofficial mobile phone imports.
During the pre-budget discussion, business representatives from various sectors raised several proposals related to tax policy, tariff structure, and market regulation. The NBR chairman assured to consider these proposals.
