Editorial
Tackling duty evasion
Plug the loopholes
The practice of evading high rate of customs duty on luxury goods through false declaration appears to have become the norm in Chittagong port. Indeed a closer look at the statistical data available leads one to believe that attempts to defraud the national exchequer have become institutionalised. Despite the best efforts by authorities, who raised the fine by 200 percent on importers for attempting to commit fraud by making false declarations on goods brought in, the fact remains that the unhealthy practice is witnessing a most healthy growth.
The current fiscal has witnessed a rise of 84 per cent in such cases over the last fiscal year and no less than 122 cases of false declarations were detected by authorities in January, alone. While authorities realised Tk520 million in fines and taxes, it is safe to assume that many consignments failed to be detected and got through the system and the loss in terms of revenues uncollected remains anybody's guess.
While in the past customs authorities had to deal primarily with false declarations made on electronics and other goods, what is emerging as a major headache over the last one year is the trend of importing luxury cars under false pretences. Over the last quarter, nearly half a dozen luxury vehicles have been detected and seized by port authorities. However, what has emerged from investigation of these repeat offences is that such practices could not be sustained over long periods without the connivance of corrupt officials. And unless the various departments working under the port authority are 'clean' themselves, no amount of increased vigilance by authorities will have any meaningful dampening effect on this most lucrative of businesses. Besides incurring serious loss to the national exchequer in terms of taxes uncollected, this lax system of checking opens up the possibility of other contraband of more sinister nature entering the country including drugs and firearms. Thus the arguments for stricter control at the port of entry make a compelling case for the government to swing into action.
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