New strategy on car import likely next fiscal

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Doulot Akter Mala
The government is set to adopt a new strategy on import of reconditioned and new cars from the next fiscal in a bid to check evasion of billions of taka in revenue through under-invoicing and false declaration of prices.
The National Board of Revenue (NBR) has recently taken its first-ever move to collect actual price of cars directly from the leading car manufacturers in Japan.
The move has been taken prior to the budget for fiscal 2010-2011 following instruction of finance minister AMA Muhith.
Officials said the finance minister has asked the NBR to bring changes to strategies of car import as the government identified a significant amount of revenue loss in this sector.
Import of cars usually increases sharply before budget every year. A section of unscrupulous importers indulges in evasion of tax as the government every year increases taxes on import of cars.
A high-powered team of the customs department will visit Japan next month to discuss possible ways to ensure proper revenue collection from car import.
The team will meet with the people at relevant government bodies and private sector car manufacturers.
Officials said the team aims to meet with the Japan government people and the country's leading car manufacturers like Honda, Toyota, Mitsubishi and Nissan to find out a strategy on checking tax evasion through car import.
"The NBR will try to convince the Japan's car manufacturers to supply the original prices of cars to the customs department," said a senior customs official.
Customs authorities will match the original prices of car with the importers' prices and levy duty on the basis of the real prices, he said.
Presently, importers purchase car via dealers of importing country. The customs department gets the dealers' quoted price for valuation. They do not have any direct communication with the car manufacturers.
Officials said the NBR might change the strategies for both import of new and reconditioned cars from next fiscal.
The team, led by Hossain Ahmed who heads the customs department, has arranged the visit prior to the coming budget to bring a possible change in the policy of car import for the fiscal 2010-2011.
The NBR has requested the Bangladesh embassy in Japan to arrange a meeting with the leading car manufacturers in Japan and relevant government entities and the customs to make the visit successful.
The team aims to meet with the officials of the finance ministry in Japan, customs bureau, Japan Automobile Manufacturers Association, Japan Automobile dealers' Association and Japan Auto Appraisal Institute.
The team will also meet people at Japan Export Vehicle Inspection Centre Limited (JEVIC) that certifies reconditioned cars to be imported from Japan.