New Regulation Issued on Cigarettes

Photo: Collected

News Desk: The National Board of Revenue (NBR) has introduced new provisions regarding the use of stamps or banderoles on packets of domestically produced and imported cigarettes.

The “Rules on the Method of Using Stamps or Banderoles on Packets, Including the Fixation of Prices of Manufactured or Imported Tobacco-Containing Cigarettes, 2019” have been further amended in this regard.

Under the amended provisions, stamps or banderoles must be used based on the maximum retail price of cigarettes, the number of sticks in a packet, the type of packet, and the prescribed design.

According to the new table, if the maximum retail price per 10 sticks is Tk 65 or above, a light-green banderole must be used on 10-stick “shell-and-slide” packets.

For 10- and 20-stick “hard-and-soft” packets within the same price range, a stamp featuring a light-brown design must be used.

If the maximum retail price per 10 sticks is Tk 92 or above, a light-pink banderole must be used on 10-stick “shell-and-slide” packets.

For 10- and 20-stick “hard-and-soft” packets in this price range, a stamp featuring a light-green design must be used.

In addition, if the maximum retail price per 10 sticks is Tk 160 or above, a stamp featuring a light-blue design must be used on 10-, 12-, and 20-stick “hard-and-soft” packets.

Meanwhile, if the maximum retail price per 10 sticks is Tk 210 or above, a stamp featuring a light-maroon design must be used on 10-, 12-, and 20-stick “hard-and-soft” packets.

The NBR issued a notification concerning value-added tax and supplementary duty on September 15. The notification was published in an extraordinary issue of the Bangladesh Gazette the following day, September 16.

The notification states that, for the purposes of Rules 4 and amended Rule 5, stamps or banderoles must be used in accordance with the maximum retail price, number of sticks, type of packet, and prescribed design of the relevant cigarette packet, subject to the provisions of Rule 6.

The notification was signed by Acting Secretary and Acting Chairman of the National Board of Revenue, Ahsan Habib, on behalf of the NBR.

The amended provisions will take effect immediately, according to the notification.