DHAKA, Dec 4, 2025 (BSS) - The National Board of Revenue (NBR) has uncovered evidence of nearly Taka 9 crore in revenue evasion during a special enforcement operation at the Ishwardi-based factory of United Tobacco Industries Limited.

Acting on a tip-off, the drive was carried out by the VAT Audit, Intelligence and Investigation Directorate as part of NBR’s intensified efforts to curb illegal production, marketing, and tax evasion involving tobacco products.

According to NBR officials, although the company held a valid VAT registration, it had been secretly manufacturing and marketing cigarettes without reporting official production data. The covert activity resulted in significant evasion of government revenue, said an NBR press release.

During the operation, the team confiscated 634,590 sticks of cigarettes bearing counterfeit banderols, valued at more than Taka 38 lakh. These items alone account for an estimated Taka 29 lakh in evaded revenue. The team also recovered 1,029,000 unused counterfeit banderols and stamps which, if used, could have enabled additional revenue evasion exceeding Taka 8.5 crore.

Investigators further noted that the company had procured 322,500 pieces of legally issued banderols but chose not to use them, instead relying on counterfeit banderols for illegal production and sales.

NBR has seized all cigarettes and materials in accordance with the law and initiated legal proceedings against the company. A full investigation report will be submitted soon based on the documents recovered during the operation. 

The relevant VAT Commissionerate has also been directed to intensify monitoring of the company’s production and sales activities.

Officials reaffirmed that NBR will continue taking stringent and sustained measures to protect national revenue by preventing illegal tobacco production, counterfeit banderol use, and tax evasion.