ঢাকামঙ্গলবার , ৮ সেপ্টেম্বর ২০২৬
The Prime Minister’s Office has asked the National Board of Revenue (NBR) to provide documents and findings on allegations that British American Tobacco Bangladesh (BATB) evaded hundreds of crores of taka in taxes.
The move follows a report published by The Daily Inqilab on 17 August 2026, which alleged that BAT Bangladesh reduced its tax liability through income concealment, disputed tax stamp wastage and cigarette production before a budget announcement.
In a letter dated 23 August, Md Ashraful Islam, Director-5 at the Prime Minister’s Office, asked the NBR chairman to submit relevant documents and a report on the allegations. A copy of the newspaper report was also attached to the letter.
The allegations were reportedly based on audit findings and VAT-related documents from the NBR’s Large Taxpayer Unit (LTU).
According to the report, BAT Bangladesh declared income of Tk 2,730.79 crore for the 2022-23 assessment year. However, an LTU audit later assessed the company’s income at Tk 2,942.31 crore, which was Tk 211.52 crore higher than the declared amount.
The difference was described in the report as possible income concealment. It estimated that the related tax liability could exceed Tk 100 crore after considering applicable tax rates and surcharges. However, the final amount, if any, will depend on the NBR’s audit process, settlement of objections and legal procedures.
The LTU audit also examined several expense categories, including production costs, commissions, legal expenses, security costs, audit fees and research expenses. Officials are reviewing whether any expenses were overstated, resulting in lower taxable income.
Another allegation relates to cigarette tax stamps, known as banderoles. The report claimed that between April and June 2025, BAT Bangladesh recorded usable stamps as damaged or wasted, allegedly causing around Tk 23 crore in VAT losses. It estimated that the annual impact could reach about Tk 92 crore if the same pattern continued.
The estimated figure is not a final tax assessment. BAT Bangladesh reportedly said the wastage occurred due to factory relocation and worker movement, while tax officials questioned whether the explanation was supported by sufficient evidence.
The report also raised concerns over cigarette production before the 2024-25 budget announcement. It alleged that BAT Bangladesh produced and stored 356.5 million cigarette packs before the budget and paid duties based on the previous tax rates.
After the budget increased cigarette prices and tax rates, the company allegedly sold those products at higher prices while paying taxes under the earlier rates. The report estimated a possible revenue gap of Tk 221.86 crore, although it also mentioned another figure of Tk 210.86 crore, which requires further verification.
The LTU-VAT unit has reportedly issued a show-cause notice to BAT Bangladesh over the matter.
The Prime Minister’s Office request does not confirm any wrongdoing but seeks an official review of the allegations. The NBR’s findings will determine whether any tax violations occurred and whether further action is required.
Ibrahim Khalil, a tax analyst at Bangladesh Network for Tobacco Tax Policy (BNTTP), welcomed the initiative and called for a detailed investigation into the allegations.
The final outcome will depend on the NBR’s assessment and any subsequent legal action.
