Government Loss of 20000 Million BDT Revenue Yearly through Illegal Trade

The annual revenue of Bangladesh is being affected by the illegal trade of products relating to cigarettes.  The estimated value of the annual loss through illegal trade of cigarettes is 20000 million Bangladeshi Taka. According to the country’s economists, it has been declared that 2000 million is nearly about 10 percent of the tobacco sector’s revenue. 

According to researchers, country’s growth of illegal trade of cigarettes has some major reasons behind, they are, the structure of tax, which is complex, no proper supervision and also not an admirable policy. The Notice Board of Revenue has stated that for Bangladesh, revenue of cigarettes is one of the biggest sources of incomes as it at least brings around 10% of the total revenue of the country. 

The forbidden trade of cigarettes is mostly produced locally, as it is mentioned that 92% of the forbidden trades are produced by omitting the taxes and by local tobacco companies. It is weakening the infrastructure of the country by neglecting the laws, which are crucial to being followed. In the last 5 years, the revenue of this sector has only increased but now due to illegal trade, there is a chance of enduring a shrink down. 

This year it is expected, that from the cigarette industry around 250000 million Bangladeshi taka is going to be earned, however, in the last two fiscal years, the amounts were 230000 million Bangladeshi Taka in 2017-2018 and 19000 million Bangladeshi Taka in 2015-2016.  However, if the illegal trade continues it will toughen to reach the estimation. This year, the want of the low budget cigarettes have increased too. 

Previously, to eradicate the number of illegal trades, the government had imposed a higher amount of cigarette rates, which had also increased the revenues of the sellers. However, a syndicate, which is illegal is now making sales of cigarettes in various reasons of the country by attaching fake tax stickers, which is causing the trouble and breakdown. 

Bizbangladesh dictates that as the revenue, which comes from cigarettes covers 10% of the entire revenue Bangladesh makes, it is high time and crucial to take lawful and proper steps to stop this trauma. If it continues it will lead to aneconomic breakdown and on the other hand, decrease the sales of the country by a huge amount. Lawful steps must be taken against the company, which attached fake stamps to the cigarette packets.