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Excise Tax Complete Guide

Tobacco, energy drinks, soft drinks — everything you need to know about excise.

EXCISEMarch 2026 · 7 min read

Excise Rates

Product Rate Includes
Tobacco products 100% Cigarettes, shisha, cigars, chewing tobacco
Energy drinks 100% Red Bull, Monster, any taurine/caffeine drink
Carbonated drinks 50% Coca-Cola, Pepsi, sparkling water with flavour
Sweetened drinks 50% Juice with added sugar, flavoured milk drinks

⚠️ VAT on Excise

VAT is charged on top of the excise-inclusive price. So a BD 1 energy drink becomes BD 2 after 100% excise, then BD 2.20 after 10% VAT. The effective tax burden is 120% of the original price. Importers, manufacturers, and stockists must register for excise with the NBR.

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