# Bangladesh Deploys Tech-Driven Strategy to Combat Illicit Tobacco Trade

*The government has introduced a technology-driven strategy to eliminate the illicit tobacco trade, strengthen tax enforcement, and safeguard national revenue through a comprehensive ‘Track and Trace system’.*

July 12, 2026 · Economy

## At a glance

- Government introduces technology-driven strategy to combat illicit tobacco trade.
- Comprehensive ‘Track and Trace system’ uses AI, digital authentication, and real-time monitoring.
- Mobile app for public reporting and whistleblower reward scheme proposed.
- Supplementary duties imposed on acetate tow, filter rods, nicotine granules, and pouches.
- Minimum retail prices of cigarettes revised to curb unauthorized production.

In a bid to combat the illicit tobacco trade and safeguard national revenue, the government has unveiled a comprehensive technology-driven strategy. Central to this initiative is the introduction of a ‘Track and Trace system’ that leverages artificial intelligence, digital authentication, and real-time monitoring to ensure proper tax collection and prevent illicit trade in tobacco products.

## Comprehensive Track and Trace System

The proposed system will introduce real-time monitoring of tobacco production and supply chains through AI-enabled cameras and automated counting devices installed in tobacco manufacturing facilities. Additionally, QR Codes or AR Codes will be incorporated on cigarette tax stamps to enable authentication of tobacco products throughout the supply chain.

## Public Participation and Enforcement

To enhance enforcement, the government plans to introduce a dedicated mobile application that will allow citizens to report illicit tobacco products directly to the National Board of Revenue (NBR). A whistleblower reward scheme has also been proposed to encourage credible information on tobacco smuggling and illegal products.

## Supplementary Duties and Price Revisions

The budget proposes imposing a 300 percent supplementary duty on acetate tow and filter rods, and a 350 percent supplementary duty on the import of nicotine granules and nicotine pouches to discourage their use. The minimum retail prices of cigarettes per 10 sticks have been revised, with the low-tier segment proposed at Tk 62, medium tier at Tk 92, high tier at Tk 160, and premium tier at Tk 210.

## Significance and Implications

The proposed measures reflect the government’s strategy of combining digital technology, stronger enforcement, public participation, and fiscal policy to combat illicit tobacco trade, protect government revenue, and advance public health objectives. With an illicit market share estimated between 5.6 percent and 18 percent, these steps are crucial for curbing tax evasion and reducing the harmful impact of tobacco consumption on public health.

## What Happens Next

The implementation of these measures is expected to enhance the government’s ability to monitor and regulate the tobacco market effectively. By leveraging technology and public participation, the government aims to create a more transparent and accountable system that ensures proper tax collection and protects consumers from illicit products.

## Sources

- BSS

---
Source: https://pulsetoday.com.bd/en/economy/bangladesh-tech-driven-anti-tobacco-strategy