Over BDT 100 Crore in Tax Evasion in Five Years: Royal Tobacco Factory Sealed in Narayanganj During Joint Operation

NN Report:

On Monday, May 19, law enforcement agencies conducted a joint operation and sealed a cigarette manufacturing factory of Royal Tobacco Company located in Godaileghat area of Siddhirganj upazila, Narayanganj, over large-scale tax evasion and the use of counterfeit and reused revenue stamps.

The operation was led by Narayanganj Assistant Commissioner and Executive Magistrate Md. Tarikul Islam, in coordination with members of RAB-11, Customs, Directorate of National Consumers’ Rights Protection, Police, and Ansar.

During the drive, 14 thousand packets of cigarettes (equivalent to 140,000 sticks) and around 2.1 million counterfeit and reused revenue stamps were seized. The factory was fined BDT 5 lakh, and the company’s VAT officer was sentenced to 14 days of imprisonment.

According to sources, since 2021 the company had been evading an average of BDT 6 lakh in revenue daily — amounting to nearly BDT 2 crore monthly. Over the past five years, this evasion is estimated to exceed BDT 100 crore. The company is also accused of using a mix of 50 percent genuine and 50 percent reused revenue stamps for marketing its cigarette products.

It is worth noting that a similar operation was carried out in 2023 on the same factory, which was sealed at the time under similar charges. However, the factory resumed operations within just seven days.

All seized illegal stamps were destroyed in today’s drive, and the factory was sealed again. Officials involved in the operation have stated that such drives against tax evasion and fraudulent practices in the tobacco sector will continue.