New provisions for stamp-banderole on cigarette packets

The National Board of Revenue (NBR) has added new provisions to the method of using stamps or banderoles on packets of manufactured and imported tobacco cigarettes. For this, the ‘Method of Determining Price of Manufactured or Imported Tobacco Cigarettes and Using Stamp or Banderole on Packets Rules, 2019’ has been further amended.

A notification in this regard regarding value added tax and supplementary duty was issued by the National Board of Revenue on September 15. It was published in the extra issue of Bangladesh Gazette the next day on September 16. The amended provisions will come into force immediately, the notification said.

Under the powers conferred by reading Section 135 and Section 58 of the Value Added Tax and Supplementary Duty Act, 2012, sub-rule (4) of Rule 5 of the rules has been changed and a new sub-rule has been substituted.

According to the amended provisions, stamps or banderoles will have to be used based on the maximum retail price of cigarettes, the number of sticks in the packet, the type of packet and the prescribed design.

According to the new provisions, if the maximum retail price per 10 sticks is 65 Tk or more, light green design banderole will have to be used on 10-stick ‘shell and slide’ packets. In the same price range, light brown design stamp will have to be used on 10 and 20-stick ‘hard and soft’ packets.

If the maximum retail price per 10 sticks is 92 Tk or more, light pink design banderole will have to be used on 10-stick ‘shell and slide’ packets. In this price range, light green design stamp will have to be used on 10 and 20-stick ‘hard and soft’ packets.

Besides, if the maximum retail price per 10 sticks is 160 Tk or more, light blue design stamp will have to be used on 10, 12 and 20-stick ‘hard and soft’ packets.

On the other hand, if the maximum retail price per 10 sticks is 210 Tk or more, light maroon design stamp will have to be used on 10, 12 and 20-stick ‘hard and soft’ packets.

The notification said that for fulfilling the purpose of Rule 4 and amended Rule 5, stamps or banderoles will have to be used according to the maximum retail price of the relevant cigarette packet, number of sticks, type of packet and prescribed design, subject to the provisions of Rule 6.

Acting secretary and acting chairman Ahsan Habib of the National Board of Revenue has signed the notification by order of the board. The new provisions have come into force as soon as they were published.