Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 737 Sat. June 24, 2006  
   
Front Page


Customs probe import tax
Tk 1.85 cr evaded in only 6 cases


The customs intelligence in a recent investigation has found out a section of unscrupulous importers guilty of large-scale evasions of taxes through under-invoicing.

The Directorate of Customs Intelligence and Investigation has detected about Tk 1.85 crore tax evaded in only six cases.

The investigators found huge mismatches between the transaction value of the imported products at loading ports and import documents at Chittagong Port.

According to the investigation, importers brought spices, food grains and other food staff from Iran, Malaysia and Singapore by declaring prices lower by $200 to $500 than the original prices.

The investigators compared the quoted prices of the products by collecting export documents from the loading ports' customs officials and import documents submitted to Chittagong Port.

In one case, an importer showed the price of per tonne cumin seed $750 as imported from Afghanistan. However, the investigators by reviewing the loading port's documents found out the original price was $1,000 set by an Iranian exporter.

In another case, an importer declared a shipment of spices worth $10,350 at Chittagong Port but the price was found out to be $16,380 at the Dubai loading port.

Speaking anonymously, an intelligence official said, "We conducted the investigation at a random sampling basis and found out importers in each and every case are involved in under invoicing to evade taxes."

He said tax evasion can be curbed if the National Board of Revenue (NBR) reintroduces a system of collecting information from the customs offices in different countries.

Contacted, a high official of the NBR said the government has no immediate plan to discontinue the existing system.

The official however said the government is considering introduction of collecting dedicated and instant information from the customs houses at all the major trading ports around the globe to stop tax evasion.

Sharing information will take some more time to replace the system as it needs signing bilateral agreements with a number of countries, the official added.