Liquor License in Bangladesh 2026: Bar Licences, Permits, Fees and Penalties

by Barrister Tahmidur Rahman | Oct 21, 2026 | Insights, Regulatory & Compliance | 0 comments

TRW Insight / Bangladesh

Every dealing in alcohol in Bangladesh needs its own licence, permit or pass under the Narcotics Control Act 2018 and the Alcohol Control Rules 2022. Knowing which category applies, and the conditions attached, decides whether a hotel, club, importer or individual is lawful.

Updated 21 October 2026Legal insightBangladesh24 min read

A liquor license Bangladesh businesses can rely on is never a single document. Every dealing in alcohol, from building a distillery to pouring a glass in a hotel bar, needs its own licence, permit or pass under the Narcotics Control Act 2018, and the detail of who qualifies, what it costs and how a venue must operate sits in the Alcohol Control Rules 2022. The Department of Narcotics Control issues and polices these authorisations, and the same statute that punishes yaba and heroin trafficking also punishes a hotel that sells beyond its licence.

This guide is written for hotel owners, restaurant and club operators, importers, investors and foreign residents. It explains the licence and permit categories, the bar licence process, individual drinking permits for foreigners and eligible citizens, import and manufacturing licences, fees, suspension and cancellation, penalties and the 2026 changes, including the Narcotics Control (Amendment) Act 2026, the new narcotics tribunals and the budget measure on locally produced liquor. Narcotics offences generally are covered in our separate guide to drug laws in Bangladesh.

Liquor license Bangladesh — hotel bar counter operating under a Department of Narcotics Control bar licence
Every bar in Bangladesh operates under a licence issued under the Narcotics Control Act 2018

Summary: Alcohol is lawful in Bangladesh only inside a licensing system. Section 10 of the Narcotics Control Act 2018 bars producing, importing, transporting, selling, storing or consuming alcohol without a licence, permit or pass, and section 11 bars drinking without a permit, with a medical prescription required before a Muslim can be given one. The Alcohol Control Rules 2022 set the categories: bar licences for hotels by star rating, restaurants, qualifying clubs and specified zones; retail and off-shop licences; import licences with brand registration; distillery and brewery licences; and individual permits for foreign and local liquor. Breach of licence conditions can lead to fines, suspension and cancellation, and unlicensed dealing is a criminal offence.

Key point: The 2026 amendment to the Narcotics Control Act raised the ceiling on the fine for breaching the conditions of a licence, permit or pass from Tk 1 lakh to Tk 5 lakh, according to the bill placed in Parliament on 27 June 2026. Bars, off-shops and importers should treat every licence condition, from opening hours to stock registers, as a compliance obligation with real financial exposure.

At a glance

01

Parent statute

The Narcotics Control Act 2018 governs alcohol through sections 10, 11 and 13 and the punishment table in section 36.

02

Detailed rules

The Alcohol Control Rules 2022, issued in February 2022, replaced colonial-era excise rules and set licence types, quotas and fees.

03

Bar licences

Hotels are capped by star rating, from one bar at two stars to seven at five stars and above; clubs need 200 permit-holding members.

04

Individual permits

Applicants must be 21 or over; a foreign liquor permit was priced at Tk 3,000 and a local liquor permit at Tk 150.

05

2026 changes

A higher fine ceiling for licence breaches, 22 narcotics tribunals and a proposed Tk 500 per litre VAT on local liquor.

Table of Contents

Bangladesh does not prohibit alcohol outright. It controls it. The controlling statute is the Narcotics Control Act 2018 (Act No. 63 of 2018), which treats alcohol as one of the substances listed in its schedule and then carves out a licensing regime for lawful production, trade and consumption.[1] The practical consequence is that a liquor license Bangladesh authorities grant is a narcotics licence in legal form, issued by the Director General of the Department of Narcotics Control or an officer authorised by the Director General, in the form, on the conditions and for the fees that the rules prescribe.[1]

How the Narcotics Control Act 2018 defines alcohol

Section 2 defines alcohol chemically, as an organic compound containing a hydroxyl group bonded to a hydrocarbon, and also by reference to specified liquids listed in class kha (item 3) and class ga (items 1 and 2) of the schedule.[1] That schedule classification matters because the punishment table in section 36 is organised by class and item, so the class of the product determines the sentencing band for an unlicensed dealing.[2] Section 68 gives the government the power to make rules under the Act, and the Alcohol Control Rules 2022 are the rules made for alcohol.[1]

The Alcohol Control Rules 2022

The Ministry of Home Affairs issued the Alcohol Control Rules 2022 on 5 February 2022. They replaced the 1915 and 1918 guidance volumes of the old salt and excise department, the 1950 prohibition rules and a series of earlier notifications, which had governed liquor in a patchwork for decades.[4] The rules were issued through the Home Ministry's Security Services Division and also revised the licence, permit and renewal fees that had previously been set by the 2014 fee rules.[5] [6]

The Alcohol Control Rules are now the working manual for every bar licence, permit and import entitlement. They cover who can hold a bar licence, how many bars a hotel may run, opening hours, closing days, purchase quotas, sourcing ratios between local and imported liquor, health warnings, brand registration and the procedure for imports.[4] [8]

Who regulates the alcohol trade

The Department of Narcotics Control is the licensing and enforcement authority. Its district offices receive applications, carry out inspections and issue permits; its regional offices and headquarters review licence applications; and the Director General approves them.[7] The Security Services Division of the Home Ministry sits above the Department, makes the rules and grants certain import permissions.[6] [8] District Magistrates and Police Commissioners also hold a power to close licensed premises temporarily for law and order reasons, discussed below.[3]

Licensing

Department of Narcotics Control

Issues and supervises licences, permits and passes; Director General approves licences.

Rule-maker

Security Services Division, Ministry of Home Affairs

Issued the Alcohol Control Rules 2022 and grants certain import permissions.

District level

DNC district offices

Receive applications, inspect premises and issue individual drinking permits.

Law and order

District Magistrates and Police Commissioners

May close a licensed bar or shop for up to 30 days under section 19.

Customs

Customs Bond Commissionerate

Issues bond licences for duty-free imports and diplomatic passbooks.

Courts

Narcotics Offence Suppression Tribunals

Since September 2026, try cases carrying a minimum of five years in 22 districts and metropolitan areas.

Licence, permit and pass: what the Act requires

Section 10(1) of the Narcotics Control Act 2018 lists eight groups of activity that no person may carry out without a licence, permit or pass: (a) establishing a distillery or brewery; (b) producing or processing alcohol; (c) carrying, transporting, importing or exporting it; (d) supplying, marketing, buying or selling it; (e) possessing, storing, warehousing or displaying it; (f) consuming or using it; (g) using it as an ingredient of alcohol-based medicine; and (h) attempting, financing, sponsoring or running an enterprise for any of those purposes, or making a false declaration.[1] Law enforcement agencies handling alcohol in the course of official duty, on proper documents, are exempt.[1]

Three kinds of authorisation

The Act uses three instruments. A licence authorises a business activity: running a bar, a shop, a warehouse, an import trade, a distillery or a brewery. A permit authorises an individual to consume alcohol. A pass authorises carrying or transporting a consignment along a stated route.[5] [7] A business will usually need more than one: a hotel bar needs its bar licence, its suppliers need sale and transport authorisations, and every guest who is not exempt needs a permit.

Validity and renewal

A licence, permit or pass is valid until the date stated in its conditions or until the end of the financial year of issue. Under the 2022 rules, licences and permits run from 1 July to 30 June, so renewal falls due at the start of each fiscal year.[1] [6] A licence or permit that is not renewed for three consecutive years cannot be renewed at all, which means a lapsed venue must apply again from the beginning.[1]

Who cannot hold a licence or permit

Section 14 of the Narcotics Control Act disqualifies a person convicted of an offence involving moral turpitude and sentenced to at least three months' imprisonment, until five years after release; a person fined more than Tk 500 for such an offence, until five years after paying; a person convicted of an offence under the Act; and a person whose licence or permit was cancelled for breach of its conditions.[3] Investors should run this check on every director and nominated licensee before a bar licence application is filed, because a disqualified individual can sink the application.

Individual drinking permits for foreigners and eligible persons

Section 11(1) is the starting point for individuals: no one may drink alcohol without a permit, and a permit may not be issued to a Muslim unless a Civil Surgeon or a government medical college associate professor or above gives a written prescription stating the medical need.[1] [3] Non-Muslim citizens and foreign nationals do not need a prescription, but they still need a permit to drink outside the statutory exemptions.

Exemptions under section 11

  • Licensed bars: foreign nationals, and citizens who hold a permit, may drink while seated in a licensed bar.[3]
  • Diplomats and passbook holders: foreign nationals holding diplomatic passports, and persons holding passbooks issued by customs or recognised under the baggage rules, are exempt from the provisions on importing, buying, carrying, storing and drinking alcohol.[3]
  • Traditional drinks: the permit requirement does not apply to the customary consumption of tari and pachui by specified communities, including tea workers and small ethnic groups, or to traditionally made liquor of small ethnic groups in Rangamati, Bandarban and Khagrachhari and other areas.[3]

Outside those exemptions, the general rule applies. A foreign resident who wants to buy liquor from a licensed shop or keep it at home, rather than drink in a hotel bar, should hold a permit. The rules also allow indigenous people over 21 in the Hill Tracts to drink at home.[4]

Age, quotas and units

No one under 21 may be given permission to drink.[4] A permit holder may buy no more than three units at a time and seven units a month, except in special cases the rules provide for.[5] A unit is 750 ml of foreign spirit, 2,250 ml of wine or fifteen 750 ml bottles of beer.[4] Bars and shops record sales against permits, so the quota follows the holder rather than the venue.

Foreign liquor and local liquor permits

The Department of Narcotics Control issues drinking permits in two categories: for imported or foreign liquor and for local liquor.[7] As reported when the rules were issued, the fee is Tk 3,000 for a foreign liquor permit and Tk 150 for a local liquor permit, with separate renewal fees.[6] A person cannot hold both kinds of permit for the same period.[5]

How to apply for a permit

The applicant files the prescribed form, downloadable from the Department's website, with the district office's Deputy Director, together with the original treasury challan for the fee, two passport-size photographs and an attested copy of the national identity card; Muslim applicants also attach the medical certificate. The fee is paid to Bangladesh Bank or Sonali Bank under the excise head, code 1-2273-0000-1001.[7] The Deputy Director sends the file to an inspector for verification, approves it and the inspector issues the permit.[7] A foreign national without a national identity card should expect to submit a passport and visa or residence documents instead, and should confirm the district office's current checklist before filing.

Liquor license Bangladesh — permit holder's purchase recorded against the monthly quota
Permit holders may buy three units at a time and seven a month

Bar licence in Bangladesh: who can hold one

A bar licence authorises a venue to store, display, serve and sell alcohol for consumption on the premises. The Alcohol Control Rules 2022 extend eligibility to hotels, restaurants and other places that serve regular food together with alcohol, to qualifying clubs, and to specified zones and projects.[4] Each category carries its own conditions, and a liquor license Bangladesh officials grant for one category cannot simply be transferred to another kind of venue.

Hotels and the star-rating cap

The number of bars a hotel may run depends on its star rating: up to seven for a five-star hotel or above, up to three for a four-star hotel, up to two for a three-star hotel and one for a two-star hotel.[4] In practice the star rating must be in place before the bar licence application, because the cap is calculated from it. A hotel that is upgrading should sequence the rating and the licence, rather than apply for bars it is not yet entitled to.

Restaurants and clubs

A restaurant serving regular food may apply for a bar licence. For clubs the rules use thresholds: a club with 100 or more permit-holding members may apply for a liquor licence, and a club with more than 200 such members may apply for a bar licence.[4] Permit-holding club members may drink in the club's designated premises, and a club with more than 200 permit-holder members may import up to 40 per cent of its foreign liquor, with the remaining 60 per cent sourced locally.[5] Club applications should therefore be supported by a verified membership list showing each member's permit.

Zones, resorts and projects with foreign nationals

The rules allow bars in export processing zones, theme parks, resorts and government development projects where foreign nationals live, and allow certain hotels, resorts and restaurants to open bars and sell foreign liquor to support tourism.[4] For investors in economic zones, the liquor license Bangladesh requires of zone operators sits alongside the zone authority's own approvals; our note on investment approvals from BIDA and BEPZA explains those.

Operating conditions for a licensed bar

A bar licence is conditional, and most enforcement problems arise from breaches of conditions rather than from having no licence at all. The Alcohol Control Rules 2022 attach a set of operating rules to every licensed bar and shop.

Hours and closing days

Bars and liquor shops close at 10:30 pm, and holders of a special licence may stay open until 1:30 am.[4] Sales venues must close on Fridays, on Muharram, Shab-e-Barat, Eid-e-Miladunnabi, Shab-e-Qadr, Eid-ul-Fitr and Eid-ul-Azha, and on government holidays.[4] [5] A hotel that opens its bar on a closing day breaches the licence even if every guest is a foreign national.

Sourcing, display and labelling

Hotels, restaurants, clubs and bars may buy 40 per cent of their alcohol from Bangladesh Parjatan Corporation, paying regular taxes, or import it directly, with the remaining 60 per cent sourced locally.[4] Permit and licence holders may not display alcohol to attract customers, and every bottle sold domestically must carry a health warning.[4] [5] Stock records should reconcile purchases from each channel against sales recorded against permits, because the ratio is checked on inspection.

Inspection and temporary closure

Section 20 of the Narcotics Control Act allows the Director General or an authorised officer to enter licensed manufacturing and storage premises at any time, and licensed shops during opening hours, to examine registers, weigh and measure stock and seize anything illegal or defective.[3] Under section 19, a licensed liquor shop or bar cannot be closed without the Director General's approval, but a District Magistrate or Police Commissioner may close one for up to 30 days by written order for law and order reasons, and in a special emergency the Director General may approve a further 30 days.[3]

The bar licence process with the Department of Narcotics Control

The Department publishes its licence procedure through its district offices. For every licence other than a denatured spirit licence, the applicant files with the Director General on the prescribed form. The Director General refers the file to the district Deputy Director, who investigates and reports; the report goes to the regional office, where the Additional Director forwards it with an opinion; the Director General approves and returns the file; the applicant pays the fee and submits the original challan; and the Deputy Director issues the licence.[7]

That sequence means a bar licence is decided on two things: the paper file and the inspection report. The following steps reflect how we prepare a liquor license Bangladesh application for a hotel, restaurant or club.

Step 01

Confirm eligibility

Check the venue category, star rating or permit-holding membership against the Alcohol Control Rules 2022 and the number of bars sought.

Step 02

Clear the people

Screen every director and nominated licensee against the section 14 disqualifications before filing.

Step 03

Assemble the base file

Collect incorporation papers, trade licence, tax and VAT registration, premises title or lease and the venue's safety approvals.

Step 04

File the prescribed form

Submit the application to the Director General of the Department of Narcotics Control through the district office.

Step 05

Prepare for inspection

Make the premises, storage, floor plan and registers match the file before the Deputy Director's investigation.

Step 06

Pay and collect

On approval, pay the fee by treasury challan under the excise head and submit the original challan for issue of the licence.

Step 07

Set up compliance

Run permit-linked sales records, the 40:60 sourcing ratio, transport passes, hours and closing days from day one.

Step 08

Renew every July

Renew before the fiscal year ends; three consecutive years without renewal ends the licence.

What the underlying business must already have

The Department's investigation looks at whether the venue is a lawful business before it looks at the bar. Expect to show the company's incorporation documents with an object clause covering hospitality, a current trade licence, tax and VAT registration, title or lease documents for the premises, and the safety and environmental approvals the venue already needs to operate. Our guides to the registration of a restaurant business, the trade licence and the fire licence cover those foundations, and our map of business licences in Bangladesh shows where the bar licence sits among them.

Common reasons applications stall

The most frequent problems are a star rating or membership list that does not support the number of bars requested, a nominated licensee who is disqualified under section 14, premises documents that do not match the floor plan inspected, and fees paid under the wrong head. Each of these is avoidable with a pre-filing review.

Retail, off-shop, warehouse and duty-free licences

Not every alcohol business serves drinks on the premises. The district service lists of the Department of Narcotics Control include retail off-licences, listed separately for municipal and other areas, retail sale licences, bar licences, distillery and brewery production licences, wholesale and retail denatured spirit licences, and spirit transport passes.[7]

Sale licences and the 100-permit rule

A sale licence may be issued for an area that has at least 100 local or foreign liquor permit holders.[5] The area-eligibility rules for sale licences are the subject of a pending High Court Division challenge, discussed below, so applicants relying on it should keep evidence of the permit-holder base in the area.[9]

Denatured spirit and transport passes

A denatured spirit licence follows a shorter route: the application goes to the Deputy Director, an inspector or supervisor reports, and the licence issues after police verification and payment of the fee. A spirit transport pass is issued by the distillery officer once the revenue has been paid by challan.[7] Moving liquor without a pass is itself an offence under section 10(1)(c), whatever licence the sender holds.[1]

Duty-free and bonded operations

Section 11(4) requires every duty-free operation involving alcohol to be run under a licence issued under the Act.[3] The rules allow duty-free shops serving foreign remittance earners to import alcohol.[5] Duty-free import into a bonded warehouse also needs a bond licence from the Customs Bond Commissionerate, valid for three years under the Warehouse Licensing Rules 2024.[8] Bonded and duty-free liquor is a customs topic in its own right and is covered in a separate TRW guide; the customs framework is set out in our guide to customs law in Bangladesh.

Liquor license Bangladesh — imported wine and spirits awaiting brand registration and release
Imports need brand registration, an annual entitlement and consignment approvals

Import licences and brand registration

Importing alcohol needs a Department of Narcotics Control import licence under sections 10(1)(c) and 13 of the Narcotics Control Act, valid as stated in the licence or until the end of the fiscal year.[8] The Alcohol Control Rules 2022 add a sequence of further approvals, which Bangladesh Customs lists among the import requirements for wine.

The import approvals chain

  • Brand registration with the Director General under rule 42(6), once per brand. Only a registered brand may be imported.[8]
  • Annual import entitlement from the Department under rule 43(2).[8]
  • Prior permission for each consignment or lot from the Department under rule 43(4), and, for the categories covered by rule 42(1), from the Security Services Division under rule 42(2).[8]
  • Release order from the Department after arrival under rule 44(2).[8]
  • Passbook from the Customs Bond Commissionerate, where a diplomat imports for personal use.[8]

The rules allow alcohol to be imported from any country with which Bangladesh has trade relations, and exports of locally produced alcohol carry no tax.[4] Hotels, restaurants, clubs and bars that import directly do so within the 40 per cent ceiling described above.[4]

Duties and commercial reality

Imported liquor carries very high duty. Licensed traders have described taxes and duties of up to 650 per cent.[10] An import business plan should model the full duty incidence, the entitlement ceiling and the time needed for consignment-level permissions before any letter of credit is opened. Our guides to import and export licensing and import duty in Bangladesh explain the general trade side.

Manufacturing: distillery and brewery licences

Establishing a distillery or brewery, and producing or processing alcohol, are the first two activities section 10(1) restricts.[1] The establishment fee for a distillery under the 2022 rules is Tk 10 lakh.[6] Beer may be produced only by the government-prescribed procedure.[4] Manufacturing licences are therefore the narrowest category in the system and are granted rarely; an investor considering production should expect a policy-level decision rather than a routine liquor license Bangladesh file.

Unlicensed establishment of a distillery or brewery, or unlicensed production or processing of class kha item 3 alcohol, carries one to ten years' imprisonment and a fine.[2] Using alcohol as an ingredient of medicine without authorisation carries the same range, which is relevant to homoeopathic and other medicine manufacturers.[2] The rules contain separate provisions for homoeopathic medicine importers.[5]

Liquor license Bangladesh fees and how they are paid

The Alcohol Control Rules 2022 revised every licence, permit and renewal fee. As reported when the rules were issued, licence and approval fees range from Tk 150 at the lowest to Tk 10 lakh at the highest, the distillery establishment fee is Tk 10 lakh, a local liquor permit costs Tk 150 and a foreign liquor permit Tk 3,000.[6] Renewal fees are set separately and fall due each fiscal year.[6]

Fees are paid by treasury challan to Bangladesh Bank or Sonali Bank under the excise head, and the original challan is submitted to the Department before the licence or permit issues.[7] Fees vary by category and location, so confirm the current amount for the specific liquor license Bangladesh district office will issue before paying: an incorrect payment delays the file.

Licence fees are only part of the cost. The Department also collects excise on locally produced liquor, and the FY2026-27 budget proposed adding VAT, discussed below.[14] Venue operators should also account for ordinary VAT on their sales; see our guide to VAT in Bangladesh.

Suspension, cancellation and appeals

The Narcotics Control Act gives the issuing officer a graduated set of sanctions for every liquor license Bangladesh holder, separate from criminal prosecution.[3]

First breach: undertaking and fine

For a first breach of the conditions of a licence, permit or pass, section 15 allows the issuing officer to settle the matter by taking an undertaking or bond and imposing a fine. In the 2018 text the ceiling was Tk 1 lakh; the 2026 amendment bill raised it to Tk 5 lakh.[3] [11] Where seized goods are involved, the officer may, with supervisory approval, collect their market value and return them to the person lawfully entitled.[3] A second breach can lead to cancellation.

Suspension and cancellation

Section 17 allows suspension for up to 60 days where conditions are not being properly followed, without prejudice to other action. Section 16 allows cancellation, after a chance to show cause, for breach of conditions or a conviction for a narcotics offence.[3] Cancellation also disqualifies the holder from a fresh licence under section 14.[3]

Appeals

An appeal lies within 30 days, to the Director General against a subordinate officer's order and to the government against the Director General's own order, and the Act makes the appellate decision final.[3] That finality clause does not remove the High Court Division's constitutional jurisdiction where a decision is made without lawful authority or without a fair hearing; our guide to the writ petition in Bangladesh explains the route. The 30-day appeal window is short, so a show-cause reply should be prepared as if the appeal will follow.

Penalties for alcohol offences

Dealing in alcohol without a liquor license Bangladesh law recognises is a crime, and the punishment depends on the activity, the class of the product and, for trade offences, the quantity. The alcohol rows of the section 36 table are as follows.[2]

  • Distillery, brewery, production or processing (section 10(1)(a) or (b), class kha item 3): one to ten years' imprisonment and a fine.
  • Carrying, transport, import, export, sale, purchase, possession or storage (section 10(1)(c) to (e), class kha item 3): six months to three years up to 10 litres; three to five years from 10 to 100 litres; five to ten years above 100 litres.
  • Consumption without a permit (section 10(1)(f), class kha item 3): six months to two years and a fine.
  • Use in medicine, and attempts, financing or misdeclaration (section 10(1)(g) and (h)): one to ten years and a fine.
  • Class ga items 1 and 2 (production to storage): up to one year up to 50 litres; six months to two years from 50 to 500 litres; two to five years above 500 litres.

Separately, section 36(5) punishes anyone who drinks alcohol or any intoxicant and disturbs the public peace or behaves in an annoying manner, or who drives while intoxicated, with imprisonment of up to one year and a fine.[2] Repeat offenders face double the maximum penalty after a first sentence, and at least twenty years after a second, unless the offence carries death or life imprisonment.[2]

Collateral consequences

A conviction under the Act, other than under section 39, bars the person from holding a firearm or driving licence, and an existing one is cancelled and must be surrendered within 15 days.[3] For a licence holder, a conviction also triggers cancellation and disqualification.[3] Anyone arrested in an alcohol case should read our guide to bail in narcotics cases, which covers alcohol seizures.

Which court tries alcohol cases

Since 3 September 2026, 22 Narcotics Offence Suppression Tribunals try cases under the Act that carry a minimum of five years' imprisonment in Dhaka, Chattogram, Cox's Bazar, Narayanganj, Cumilla, Brahmanbaria, Rajshahi, Bogura, Dinajpur and Jashore, and pending cases were to be transferred within 60 days.[13] On the table above, a charge of carrying or selling more than 100 litres of class kha item 3 alcohol carries a five-year minimum and so falls within the tribunals' remit in those areas.[2] [13] Appeals from a tribunal go to the High Court Division within 30 working days.[12]

Liquor license Bangladesh — licensee reviewing compliance records before a show-cause reply
Breach of licence conditions now risks a fine of up to Tk 5 lakh

Court challenges and the alcohol-as-narcotic debate

The legal architecture is contested. On 12 June 2022 a High Court Division bench of Justice Farah Mahbub and Justice S M Maniruzzaman issued a rule asking the government to show cause why rules 7(2), 7(4), 9(3), 15(2)(ka) and 15(2)(cha) of the Alcohol Control Rules 2022 should not be declared void, on a writ filed on 20 April 2022 that concerned eligibility for licences to sell alcohol in a particular area.[9] We have not found a reported final decision on that rule, so the provisions remain in force unless and until the court strikes them down.

The hospitality industry has also pressed for separation of alcohol from narcotics. In October 2025 the Bangladesh Hotel (Three-star and Below) Restaurant Bar Owners Association asked the interim government's law adviser to enact separate laws, proposing a Dangerous Drugs Control Ordinance 2025 and an Alcohol and Alcoholic Beverages Control Ordinance 2025. The association argued that licensed traders paying duties of up to 650 per cent were being prosecuted under the same statute as drug dealers and harassed as a result.[10] The reforms that followed the February 2026 election took the form of an amendment to the Narcotics Control Act, so alcohol remains regulated inside the narcotics statute.[11] [12]

Liquor license Bangladesh: 2026 updates

The Narcotics Control (Amendment) Act 2026

Home Minister Salahuddin Ahmed placed the Narcotics Control (Amendment) Bill 2026 in Parliament on 27 June 2026. For licence holders, its most important change is the higher ceiling of Tk 5 lakh for fines on breach of licence, permit or pass conditions. It also created dedicated narcotics tribunals, added cyber offences and gave the Department firearms and dog squads.[11] The Act was passed and gazetted in July 2026, adding online drug trade offences, a cybercrime unit and a digital forensic laboratory, and expanding the Department's surveillance at borders, ports and airports.[12] The Department's sharper enforcement capacity will be felt by bars and importers as much as by traffickers.

Narcotics tribunals from September 2026

The 22 tribunals established by the gazette notification of 3 September 2026 changed the forum for serious alcohol trade cases in the covered districts.[13] Licensed businesses facing large-volume seizure allegations should confirm which court now holds the record.

VAT on locally produced liquor

The FY2026-27 budget, presented by Finance Minister Amir Khasru Mahmud Chowdhury, proposed a fixed VAT of Tk 500 per litre on domestically produced alcoholic beverages made by the state-owned Carew & Company, by amending the third schedule of the VAT Act. Until then, Carew's local alcohol paid only excise to the Department of Narcotics Control.[14] Bars and shops buying local liquor under the 60 per cent sourcing requirement should check the final VAT schedule and reprice accordingly.

What has not changed

The Alcohol Control Rules 2022 remain the operative rules, and the core licence categories, star-rating caps, quotas, hours and closing days still apply. Any future rule change will come from the Security Services Division, and the permit and licence renewal cycle still runs from 1 July.[6]

Comparing the main licence and permit categories

The table below summarises the principal liquor license Bangladesh categories, who may hold them and the key conditions. On a phone, scroll it sideways.

Main liquor licence and permit categories in Bangladesh
CategoryWho may hold itKey conditionsLegal basis
Bar licence (hotel)Two-star hotels and aboveCap of 1 to 7 bars by star rating; 10:30 pm closing; closed Fridays and listed daysAct s 10, 13; Alcohol Control Rules 2022
Bar licence (club or restaurant)Restaurants serving food; clubs with more than 200 permit-holding members40% imported or Parjatan supply, 60% localAlcohol Control Rules 2022
Sale or off-shop licenceRetailers in an area with at least 100 permit holdersSales only to permit holders within quotasAlcohol Control Rules 2022
Import licenceApproved importers, Parjatan, bars within limitsBrand registration, annual entitlement, consignment permission, release orderAct s 10(1)(c), 13; rules 42 to 44
Distillery or brewery licenceApproved manufacturersTk 10 lakh distillery establishment fee; prescribed beer processAct s 10(1)(a), (b)
Individual permitPersons aged 21 or over; Muslims on medical prescriptionTk 3,000 foreign or Tk 150 local liquor; 3 units at a time, 7 a monthAct s 11, 13
Transport passLicensed sendersRoute stated on the passAct s 10(1)(c), 13

Most hospitality businesses need a combination: a bar licence for the venue, compliant supply from licensed sources, transport passes for deliveries and, where they import directly, an import licence with brand registration and consignment approvals.

Mistakes to avoid when applying for or running a bar

  • Applying before the foundations are in place: a bar licence application without a valid star rating, a verified permit-holder membership list or clean premises documents will stall at inspection.
  • Ignoring disqualification: one disqualified director or licensee under section 14 can defeat the application.[3]
  • Letting renewals lapse: three consecutive years without renewal ends the licence permanently.[1]
  • Breaching the sourcing ratio: buying more than 40 per cent from imports or the Parjatan channel breaches the rules.[4]
  • Selling to non-permit holders: outside the bar exemption, a sale to a person without a permit exposes both seller and buyer.[1]
  • Moving stock without a pass: transport without a pass is a separate offence.[1]
  • Treating a show-cause notice lightly: the 30-day appeal window and the finality clause leave little room to recover.[3]

Foreign investors entering the hospitality sector should plan the corporate vehicle and its approvals together with the liquor license Bangladesh regulators will issue; our guide to foreign company registration in Bangladesh explains the setup. TRW's customs and trade compliance practice advises on import licensing, and our corporate and commercial advisory team handles venue structuring and licence applications.

Frequently asked questions

Is alcohol legal in Bangladesh?

Yes, within a licensing system. Under section 10 of the Narcotics Control Act 2018, producing, importing, transporting, selling, storing or consuming alcohol requires a licence, permit or pass, and section 11 bars drinking without a permit.[1]

Who issues a liquor licence in Bangladesh?

The Director General of the Department of Narcotics Control, or an officer the Director General authorises, issues licences, permits and passes under section 13 on the forms, conditions and fees in the rules.[1] [7]

Do foreigners need a permit to drink in Bangladesh?

Not in a licensed bar: section 11(3) lets foreign nationals drink while seated in a licensed bar, and diplomats and customs passbook holders are exempt. Outside those cases, the general permit requirement applies.[3]

Can a Muslim get an alcohol permit in Bangladesh?

Only on a written prescription from a Civil Surgeon or a government medical college associate professor or above, stating the medical need.[1] [3]

What is the minimum drinking age?

Twenty-one. The Alcohol Control Rules 2022 bar anyone under 21 from being given permission to drink.[4]

How much does an alcohol permit cost?

As reported when the rules were issued, Tk 3,000 for a foreign liquor permit and Tk 150 for a local liquor permit, renewable each fiscal year from 1 July.[6]

How many bars can a hotel have?

Up to seven at five stars and above, three at four stars, two at three stars and one at two stars.[4]

Can a club get a bar licence?

Yes, if more than 200 of its members hold alcohol permits. A club with 100 or more permit-holding members may apply for a liquor licence.[4]

What are bar opening hours in Bangladesh?

Bars and liquor shops close at 10:30 pm, or 1:30 am with a special licence, and must close on Fridays, specified religious days and government holidays.[4]

What is the penalty for drinking without a permit?

Six months to two years' imprisonment and a fine for consumption of class kha item 3 alcohol without authorisation, and up to one year and a fine for drunken disturbance or drink-driving under section 36(5).[2]

Source register

Primary legal and regulatory sources

Materials checked on 21 October 2026. Confirm the current official text before relying on any provision.

  1. Narcotics Control Act 2018 (Act No. 63 of 2018), consolidated text including sections 2, 10, 11, 13 and 68 — Laws of Bangladesh
  2. Narcotics Control Act 2018, section 36 (punishment table and section 36(2) to (5)) — Laws of Bangladesh
  3. Narcotics Control Act 2018, Bengali text, sections 11 and 13 to 20 — Refworld
  4. The Daily Star, 18 February 2022 — Liquor management: colonial-era rules discarded, fresh ones in place
  5. The Financial Express, 16 February 2022 — Home ministry sets new alcohol consumption rules
  6. OneNewsBD, 18 February 2022 — Alcohol Control Rules 2022: licence and permit fees and validity
  7. Department of Narcotics Control, Kurigram District Office — Services and how to obtain them (licences, permits, passes)
  8. Bangladesh Customs Trade Portal — Import requirements, HS 2204.22 (DNC licence, Alcohol Control Rules 2022, rules 42 to 44)
  9. The Financial Express, 12 June 2022 — HC questions legality of provisions of Alcohol Control Rules
  10. The Business Standard, 23 October 2025 — Hotel and bar owners urge separate laws for alcohol and narcotics
  11. UNB, 27 June 2026 — Bill placed in Parliament to strengthen anti-drug drives and expedite narcotics trials
  12. Dhaka Times, 19 July 2026 — Narcotics Control (Amendment) Act 2026 gazetted
  13. Dhaka Times, 4 September 2026 — 22 Narcotics Offence Suppression Tribunals formed
  14. Dhaka Tribune, 11 June 2026 — Tk500 tax proposed on each litre of locally produced alcohol

Related TRW assistance

Move from information to a defined next step

TRW advises hotels, restaurants, clubs, importers and investors on bar licences, import entitlements and brand registration, DNC inspections, show-cause replies and appeals. Explore our customs and trade compliance practice or contact TRW to review your licence position.

Message TRW on WhatsApp