NBR restricts flavor-capsule cigarettes to medium price tier.
The National Board of Revenue (NBR) has tightened restrictions on the supply of cigarettes containing flavoring capsules in the lower price tier, citing public health concerns.
Under the new provision, such cigarettes cannot be supplied to the market below the medium price tier.
The VAT and Supplementary Duty Department of the NBR issued a notification in this regard on September 15. The notification was published in an extraordinary issue of the Bangladesh Gazette yesterday.
According to the notification, the maximum retail price, number of cigarettes and other relevant information must be printed clearly, prominently and indelibly on cigarette packets.
The notification said the availability of flavor-capsule cigarettes in the lower price tier could increase the number of smokers and consequently raise public health risks.
In view of these concerns, a condition has been added prohibiting the supply of such cigarettes below the medium price tier.
The gazette also specified the price tiers for cigarettes. The maximum retail price for 10 sticks has been set at taka 65 and above for the lower price tier, taka 92 and above for the medium tier, taka 160 and above for the high tier and taka 210 and above for the premium tier.
As a result of the new provision, flavor-capsule cigarettes can no longer be supplied in the lower price tier, which starts at taka 65. Such cigarettes must now have a maximum retail price of at least taka 92 per 10 sticks, corresponding to the medium price tier.
The NBR said the decision was taken by further amending the relevant notification issued on June 8, 2026, under the powers conferred by section 135 of the Value Added Tax and Supplementary Duty Act, 2012, read with sub-section (2) of section 58 of the same law. The new provision will take effect immediately.
The notification was signed by Ahsan Habib, Acting Secretary of the Internal Resources Division and Acting Chairman of the National Board of Revenue.
