Dhaka, Mar 19 (V7N) – The National Board of Revenue (NBR) has announced that there will be no further tax increase on cigarettes in the upcoming fiscal year 2025-26 budget. Md. Abdur Rahman Khan, Chairman of the NBR, made this statement at a pre-budget discussion meeting held at the NBR conference room on Wednesday.

Key Announcements

  • No Additional Tax on Cigarettes: The government will maintain the current tax structure for cigarettes.
  • Action Against Fake Bidi Production: The NBR Chairman warned bidi manufacturers that strict legal action would be taken if fake bidis were not eradicated. He noted that bidis are taxed at a lower rate than cigarettes in Bangladesh.
  • Boosting VAT Collection: The expected revenue from VAT is not being realized, according to Abdur Rahman Khan. He emphasized the importance of issuing VAT receipts to customers and announced a new initiative where consumers who collect VAT receipts will be eligible to win prizes of up to 1 lakh taka through a lottery.

With this policy, the government aims to balance revenue collection while avoiding further tax burdens on the tobacco industry. The NBR is also focusing on enhancing VAT compliance and tackling counterfeit production to strengthen tax collection in the upcoming fiscal year.

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