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N’ganj DC shuts down Royal Tobacco for evading taxes


Published : 20 May 2025 10:04 PM

Royal Tobacco Company, located at Godnail Ghat under Siddhirganj police station in Narayanganj, was producing cigarettes, evading revenue of about Tk 6 lakh every day. Thus, the government was being deprived of revenue of 2 crore taka every month.

This illegal activity has been going on for a long time but for mysterious reasons, no action has been taken.

As soon as the matter was known through confidential sources, Narayanganj Deputy Commissioner Mohammad Zahidul Islam Miah ordered a raid there on Monday. Upon receiving the order from the Deputy Commissioner, a joint force led by Executive Magistrate Tariqul Islam launched the raid.

During a joint drive led by the district administration, consisting of police, RAB, Ansar, consumer rights and customs, 14,000 packets of cigarettes and reused stamps worth about Tk 2.1 million were seized from the factory. These illegal items were immediately destroyed on the orders of the Deputy Commissioner.

For such fraudulent activities, the Royal Tobacco Company was fined Tk 5 lakh and the company's VAT officer was sentenced to 14 days' imprisonment under Section 262 of the Penal Code, 1860.

After the operation, RAB-11 Senior ASP Golam Morshed said that the company used to buy old used stamps from the market and use them in new cigarette packets to evade revenue. This was estimated to be evading revenue of Tk 6 lakh every day. The cigarettes and stamps were destroyed by burning in the operation.

Narayanganj Deputy Commissioner Zahidul Islam said he had received complaints that Royal Tobacco Company had been evading revenue of about TK 6 lakh daily, or about 2 crore taka monthly, since 2021. 

They sold cigarettes using 50 percent new stamps and the remaining 50 percent old used stamps.

Locals have alleged that the district administration had raided and sealed this factory on the same charges in 2023. But just seven days later, they resumed operations and managed some corrupt officials of the local administration.

Deputy Commissioner Zahidul Islam said, "No opportunity will be given to tax evasion in Narayanganj district. No matter how influential he is. We have declared jihad against corruption and tax evasion. As part of that, I have ordered the sealing of Royal Tobacco Company."

 He also said that strict measures against such irregularities and revenue evasion will continue in the future.