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Published : 27 Apr 2026, 08:32 PM
In a bid to crack down on the illegal cigarette market and prevent revenue leakage, the National Board of Revenue (NBR) plans to introduce mandatory quick response (QR) or augmented reality (AR) codes on cigarette packets produced by tax-compliant domestic companies.
NBR Chairman Abdur Rahman Khan announced the initiative on Monday during a pre-budget discussion with tobacco industry stakeholders at the Revenue Bhaban in Agargaon.
He explained that these automated codes will allow consumers to verify instantly whether the government has received the applicable taxes for a specific pack.
The chairman also revealed plans to offer "substantial rewards" to individuals who help identify tax evasion through this system.
"We have decided to strengthen the tax stamps on every cigarette packet," Abdur Rahman said.
"We will change their colours and improve the glue technology to ensure they cannot be tampered with. There will be an automated QR or AR code that anyone can verify," he said.
He warned that those involved in marketing illegal cigarettes would face strict punishment, adding, "No one will remain off the track. Every pack will leave the factory with that specific code."
The NBR chief said the government does not intend to further increase the current 83 percent combined rate of VAT, supplementary duty, and health development surcharge.
However, he hinted at a potential rise in cigarette prices.
He directed the NBR’s policy wing to work closely with manufacturers to determine the extent and method of the price adjustments.
During the discussion, cigarette manufacturers proposed moving away from the current "percentage-based tax" system on retail prices in favour of a "specific tax" amount.
