Crackdown on tax evasion from imported goods soon

The National Board of Revenue (NBR) is going to launch a crackdown on those who are evading taxes while importing goods showing false statements.

NBR Chairman M Nojibur Rahman has given the directives in this regard at a meeting with the VAT and Customs wings of the NBR held at its conference room recently. The meeting was arranged to discuss the development and review the revenue collection, reports UNB.

According to sources at the NBR, the revenue collection growth during the July-September period was 15.74 per cent. But, the import of the expensive items marked a fall as most of those were imported through `false declarations`.

"The meeting also agreed that the coordination of the treasury chalans (receipt form) of import and `Khalas` (unloading) are not being maintained at the desired level," an NBR senior official said, reports UNB.

Citing undervaluation of imported commodities as one of the main obstacles to the Customs Department in reining in tax evasion the meeting put emphasis on the collection of information and data about commodity prices from the neighbouring and other countries from where the goods are usually imported, he said.

An NBR member was learned to have told the meeting that there is a section in all customs stations called `manifest clearance section`, but this section remains inoperative for various reasons. If this section can be made operative, then it would be easier to coordinate the system easily, he added.

The NBR chairman asked the commissioners concerned to take necessary steps to take the invoices of chalans, description of the packing list, its quantity and prices.

"The NBR chairman, apart from this, asked the officials concerned to take a `crash programme` to contain the import of items through false declarations," the NBR official said.

He said duty evasion through false declarations are done mainly while importing food and sanitary items, fabrics, glass sheet, steel sheet, electrical and electronic products.

The NBR has already asked all of its customs stations to increase their vigilance regarding the quality of imported goods, their description, HS Code, quantity measurement and declaration of duty structure.

It also asked its officials in all customs stations to remain alert regarding duty evasion by the C&F agents, freight-forwards and shipping agents.

The NBR official said under-invoicing and over-invoicing are great problems in the declaration of imported goods as it not only deprives the government of revenues, but also creates an avenue to siphon off foreign exchange.

The revenue collection authority also directed the customs stations to reexamine the records of the items which have been imported through the respective stations in the last two or three years.