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The VAT Intelligence Directorate has uncovered alleged VAT and supplementary duty evasion amounting to Tk 7.25 billion by Vargo Tobacco, a company linked to a former influential Awami League leader, according to the National Board of Revenue (NBR).
A VAT intelligence team raided the company’s factory and a warehouse on August 2 following a tip-off.
Officials reportedly found cigarette production continuing inside the factory despite the gates being shut from outside.
Investigators also found used and counterfeit banderols and cigarettes being destroyed, while the company allegedly failed to provide documents authorising the destruction, the NBR said.
Analysis of mobile phone chat records, sales-related messages and accounting information allegedly showed that the company was producing and marketing cigarettes using both genuine and previously used stamps or banderols.
A significant portion of the cigarettes was allegedly supplied to the market without VAT invoices.
Based on the seized products and information gathered during the operation, the VAT intelligence authorities initially estimated the VAT and supplementary duty evasion at Tk 7.25 billion, the NBR said.
A case has been filed against the individuals and entities allegedly involved.
Vargo Tobacco was established in 2014 by retired Major General Syed Shafayetul Islam and his wife Syeda Mahbuba Akter.
Shafayetul Islam is the younger brother of former Awami League general secretary and minister Syed Ashraful Islam, and the son of Syed Nazrul Islam, a national leader and Bangladesh’s first acting president, according to the report.
