NBR plans tougher steps to check under-invoicing
National Board of Revenue (NBR) plans to take tougher steps to check under-invoicing in imports of luxury items such as auto and refrigerator aimed at raising annual revenue, officials said.
Under invoicing is a means of tax evasion where actual price of an imported product is kept undisclosed and this malpractice occurs in the absence of effective measures.
“We have intensified our vigilance so that none can dodge tax submitting false documents,” ASM Zakir Hossain, Superintendent of Department of Customs Intelligence and Investigation of Chittagong , told BSS.
Hossain said the imported items are now inspected applying two methods - acting on tip off and risk management.
About the large scale import of luxury items including refrigerator ahead of the upcoming budget, he said the customs house is not in a position to deter traders from importing goods in large volume under the import policy (2009-12).
But, he said, ‘we can keep watch whether an importer declares import consignment accurately and gives revenue in right amount for the import.’
The Chittagong port and Customs have jointly undertaken a step to keep the delivery of goods open for 24 hours and even at the weekend so importers do not incur loss, he added.
Sources in the Customs Houses said refrigerator importers pay a fixed amount of duty to the government but for the parts of the items they pay half of the duty payable.
Explaining they said , total tax incidence (TTI) stood at 104.83 per cent for refrigerator import while the TTI is 58.58 per cent for spare parts.
Capitalizing the concession, a section of traders import refrigerator submitting declaration that they are importing spares.
“The NBR has launched a special vigilance to bring down the rate of under invoicing. If any importer is found guilty of the offence, necessary action would be taken against them,” said an official of NBR.
Industry people favoured reduction in the import duty and inclusion of policy of protectionism in the upcoming budget to help grow local refrigerator industry.
Dr Mojibur Rahman, Chairman of Bangladesh Tariff Commission (BTC) said they have found several allegations of importing sub- standard goods submitting false document.
“We are collecting facts on the allegations and necessary steps would be taken as per the law,” he added.
The Daily Sun/ Bangladesh/ 12th May 2012