Gazipur: The National Board of Revenue's (NBR) Directorate General of VAT Audit, Intelligence and Investigation has initially detected revenue evasion amounting to around Tk 72.5 crore during a raid at Virgo Tobacco Limited in Gazipur over allegations of VAT evasion in cigarette production.
According to Bangladesh Sangbad Sangstha, an NBR press release issued today stated that a preventive team of the directorate conducted a surprise raid on September 2 at Virgo Tobacco Limited in the Kaulatia area of Gazipur Sadar upazila based on confidential information. The team seized various documents from the premises and found preliminary evidence of revenue evasion through the illegal production and marketing of cigarettes, the release said.
Two teams of the VAT intelligence directorate simultaneously conducted raids at the cigarette factory and a nearby warehouse. Although the factory gate remained locked from outside, production activities continued inside. The intelligence team subsequently entered the factory by scaling the boundary wall and found cigarette production underway. The officials noticed smoke inside the factory premises and found that cigarettes bearing used and counterfeit banderoles were being burned. The company authorities could not produce the necessary documents for destroying the cigarettes and confirmed that they had not obtained departmental approval for the disposal.
The company's general manager, in a written statement, admitted that around 50 lakh cigarettes carrying counterfeit banderoles had been burned, the NBR said. The remaining burned banderoles were later seized as evidence. During further searches, the team seized used stamps and banderoles, various raw materials used in cigarette production and three mobile phones from the factory, adjoining warehouse and residential building. The team also found samples and empty packets of foreign cigarette brands, which are now under detailed investigation, the release said.
According to the NBR, a preliminary review of the seized evidence and information indicated that the company had been secretly producing and marketing cigarettes using used stamps and banderoles alongside legally issued stamps and banderoles. The VAT intelligence directorate's IT and cyber-forensics team analyzed chat histories, sales-related information and photographs of accounts stored on the seized mobile phones. The analysis found that the company had allegedly been supplying part of its cigarette production to the market for a long period without VAT Form-6.3 invoices.
Based on a preliminary assessment of the seized goods and information gathered during the operation, the authorities detected revenue evasion of around Tk 72.5 crore in VAT and supplementary duty, the NBR said. The authorities filed a case against the persons and company concerned under the Value Added Tax and Supplementary Duty Act, 2012, and relevant rules. The case number is 17/2026, filed on September 14, 2026. The NBR said the Directorate General of VAT Audit, Intelligence and Investigation, Dhaka, will continue operations to protect government revenue, prevent illegal production and marketing of tobacco products, and curb revenue evasion through the use of counterfeit stamps and banderoles.