Fake cigarette band-rolls smuggled to dodge Tk1,000 crore in tax
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
WEDNESDAY, MAY 18, 2022
WEDNESDAY, MAY 18, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Fake cigarette band-rolls smuggled to dodge Tk1,000 crore in tax

NBR

Shahadat Hossain Chowdhury
10 January, 2022, 11:00 am
Last modified: 10 January, 2022, 01:19 pm

Related News

  • Progga, Atma for raising tobacco prices to reduce deaths, increase revenue
  • 2016 EgyptAir disaster started by cigarette in cockpit: Report
  • How should the government respond to the illegal cigarette trade?
  • Increase tobacco products' prices through specific taxes: Atma demands
  • ‘10% increase in the price of cigarettes to reduce cigarette smoking by 7.1%’

Fake cigarette band-rolls smuggled to dodge Tk1,000 crore in tax

The customs authorities in an investigation found that the racket had earlier taken the release of 13 such consignments

Shahadat Hossain Chowdhury
10 January, 2022, 11:00 am
Last modified: 10 January, 2022, 01:19 pm
Representational Image. File Photo: Reuters
Representational Image. File Photo: Reuters

In December last year, the Chattogram Customs House seized fake cigarette band rolls or tax stamps worth around Tk230 crore in two consignments of offset papers brought in from China by two Chattogram-based shell companies.

Following the seizure, the customs authorities in an investigation found that the racket had earlier taken the release of 13 such consignments.

According to customs officials, the entry of the stamps, usually used in cigarette packets, has caused the government to count a loss of at least Tk1,000 crore in revenue.

As per the rules set by the National Board of Revenue (NBR), companies must collect band rolls from the Security Printing Corporation (Bangladesh) Ltd, which is the main printer of government stamps in Bangladesh.

The revenue board earns from stamp sales and, as a result, there is no scope to purchase or import such items from any organisation other than SPCL.

Modhumati Associates Ltd, the lone clearing and forwarding agent engaged in bringing in goods from the same Chinese company by Bappu Enterprise and Arafat Enterprise, has shut down its website after the shipment was seized.

The Chinese exporter, Digi Anti-Fake (Shenzhen) Co Ltd, from where the consignments came has also taken its website down.

Sharfuddin Miah, a deputy commissioner at the Audit Investigation and Research (AIR) Section of the Chattogram Customs House, told TBS, "These released band rolls may be available on packets of currently marketed cigarettes or in the possession of importers and cigarette dealers."

The customs authorities filed two separate cases against Bappu Enterprise and Arafat Enterprise on 16 December and on 23 December, respectively, with the Bandar Police Station in connection with the band rolls seizure.

In a letter to the NBR chairman on 4 January, Chattogram Customs House Commissioner M Fakhrul Alam said it is necessary to verify samples after collecting them from the depots of dealers, retailers and suspicious companies in the respective districts.

"Immediately before the stock of imported counterfeit band rolls runs out, it is possible to collect suspicious samples from the depots of the respective district dealers, retailers and suspicious companies and test them from the SPCL to find out which companies are involved in stamp forgery," it added.

The letter also mentioned that the matter needs to be reviewed by VAT detectives, customs intelligence and the VAT Commissionerates  to determine what to do to prevent such fraud.

The customs authorities have formed a five-member committee headed by Md Shahidul Islam, joint director at the VAT Audit, Intelligence and Investigation Directorate, to investigate the matter.

The committee has already asked for details of the bank accounts of the two companies.

Munawar Mursalin, a deputy director at the VAT Audit, Intelligence and Investigation Directorate and a member of the probe body, told TBS, "We are investigating the bringing in of fake band rolls. We will find out which other organisations are involved in this circle."

Md Jahedul Kabir, officer-in-charge at the Bandar Police Station, said the Criminal Investigation Department (CID) was investigating the two cases.

Shahnewaz Khaled, Chattogram Metropolitan Superintendent of Police (SP) of CID, said, "We are collecting various documents and attempts are being made to arrest those involved in the incident."  

Band roll importing firms exist on paper only

The official address of Bappu Enterprise has been mentioned to be in the GA Bhaban of Anderkilla in the port city. However, no organisation in this name was found at the address.

Abul Kalam Azad, president of GA Bhaban businessmen's welfare association, said there was no organisation called Bappu Enterprise in the building.

The address of another importer, Arafat Enterprise, has been mentioned as being in Quader Tower in the Jubilee Road area of Chattogram city.

Bappu Barua and Mohammad Arafat Hossain, owners of the two importing companies, could not be reached on their phones.

During multiple calls, the number of Md Elias, managing director of Modhumati Associates, taken from the C&F Agents Association's website was found switched off.

On 14 December, the customs authorities seized the consignment of Bappu Enterprise at the Chattogram port.

Just a week later, on 22 December, Customs found fake band rolls in a consignment of offset papers brought in by Arafat Enterprise from China.

Economy / Top News

cigarette / cigarette tax / Cigarette band-rolls / Tax Abuse

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Sri Lanka default hints at trouble ahead for developing nations
    Sri Lanka default hints at trouble ahead for developing nations
  • Photo: MumitM/TBS
    BERC recommends 57.83% hike in bulk electricity price
  • Central bank cancels foreign trips of its employees
    Central bank cancels foreign trips of its employees

MOST VIEWED

  • NBR extends corporate tax return filing deadline to 15 June
    NBR extends corporate tax return filing deadline to 15 June
  • Exporters for continuation of 0.5% source tax for 5 years 
    Exporters for continuation of 0.5% source tax for 5 years 
  • Photo: Mohammad Minhaj Uddin/TBS
    NBR to allow more firms easy release of goods from ports
  • Revenue collection ticks up
    Good revenue growth on rising prices of imported goods
  • Illustration: Collected
    Corporate tax cuts likely in next budget
  • Photo: UNB
    Benapole customs fails to meet revenue target

Related News

  • Progga, Atma for raising tobacco prices to reduce deaths, increase revenue
  • 2016 EgyptAir disaster started by cigarette in cockpit: Report
  • How should the government respond to the illegal cigarette trade?
  • Increase tobacco products' prices through specific taxes: Atma demands
  • ‘10% increase in the price of cigarettes to reduce cigarette smoking by 7.1%’

Features

‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’

‘The geopolitical landscape is undergoing profound change, Dhaka needs to craft proactive strategies’

9h | Interviews
Graphics: TBS

Facebook and Bangladeshi politicians: A new tide in mass political communication?

10h | Panorama
Despite Bangladesh having about 24,000 km of waterways, only a few hundred kilometres are covered by commercial launch services. Photo: Saad Abdullah

Utilising waterways: When common home-goers show the way

1d | Panorama
Illustration: TBS

How Putin revived Nato

1d | Panorama

More Videos from TBS

Bakery business in crisis for increased raw material prices

Bakery business in crisis for increased raw material prices

40m | Videos
Foods that have the most protein

Foods that have the most protein

45m | Videos
How Putin revived Nato

How Putin revived Nato

4h | Videos
Paddle steamers in Bangladesh

Paddle steamers in Bangladesh

9h | Videos

Most Read

1
Representative Photo: Pixabay.
Bangladesh

Microplastics found in 5 local sugar brands

2
Mushfiq Mobarak. Photo: Noor-A-Alam
Panorama

Meet the Yale professor who anchors his research in Bangladesh and scales up interventions globally

3
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

4
How Bangladesh can achieve edible oil self-sufficiency with local alternatives
Bazaar

How Bangladesh can achieve edible oil self-sufficiency with local alternatives

5
Govt tightens belt to relieve reserve
Economy

Govt tightens belt to relieve reserve

6
Impact of falling taka against US dollar
Banking

Taka losing more value as global currency market volatility persists

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab