Sales of illegally imported cigarettes through social media and e-commerce platforms have surged, depriving the government of significant revenue, according to the National Board of Revenue (NBR).
Against this backdrop, the NBR wrote to the Bangladesh Telecommunication Regulatory Commission (BTRC) on Wednesday, urging for the immediate shutdown of all websites, including F-commerce, YouTube channels and TikTok accounts involved in the illicit trade.
As a part of its crackdown, the NBR listed Elite Gallery BD and Duty-Free BD as among the online platforms selling foreign cigarettes that did not enter the country legally.
The tax authority said the product is being sold on such sites without state-approved tax stamps, known as banderols, in direct violation of Import Policy Order 2021-24.
The NBR stressed that such unauthorised sales deprive the country of its due revenue and undermines companies operating within law.
Besides, the prevalence of this illegal tobacco market will not only intensify losses for the government exchequer but also worsen public health, the letter said.
The tax authority has requested detailed information on the operators of involved online businesses, including the locations of their offices and identities of their owners, to enable enforcement agencies to launch coordinated drives and shut them down immediately.
Md Ruhul Amin, first secretary (VAT implementation) of the NBR, confirmed the move.
“We observed that various foreign cigarette brands are being sold on social media by evading taxes. So, we have sent a letter to the BTRC, requesting action against these platforms,” he told TIMES.
He also said the NBR is preparing special enforcement drives against the expanding illegal trade as the country works to improve its tax-to-GDP ratio.
According to the revenue authority, the cigarettes are entering Bangladesh through smuggling routes, bypassing all customs duties and legal checks.
The rise of this market has been described as “highly alarming”, with officials warning of growing threats to the lawful market and government revenue.
Meanwhile, industry people said steep tax hikes on legal tobacco products are encouraging some consumers to shift towards cheaper black-market alternatives.
In line with tobacco control policies, the government now captures around 83 percent of compliant companies’ sales as tobacco tax.
With rising prices in the formal market, illicit sellers have become more aggressive, they said.
A survey of the tobacco industry in September showed that illegal cigarette sales rose 31 percent over the past year and now make up 13.1 percent of the total market.
The survey claimed that more than 832 million sticks unlawfully enter the market every month, deepening revenue losses and undercutting legal businesses.
Much of the black-market supply comes from illicit whites – locally made cigarettes carrying fake, reused or no tax stamps.
Experts estimate that government losses far exceed the NBR’s previous figure of Tk2,000 crore annually as the illegal trade expands unchecked.
The British American Tobacco Bangladesh Company, the largest player in the formal market, reported a 28 percent year-on-year decline in domestic sales between January and September.
However, speakers at a recent seminar of the Power and Participation Research Centre said cigarettes, especially low-end ones, remain cheaper in Bangladesh than in peer markets.
They recommended further tax hikes to make the product less affordable. Additionally, they rejected the argument that higher taxes fuel illicit trade. Instead, they asserted that the black market grows from weak monitoring.
