Dodging duties through false declaration on imports has increased alarmingly in last few years, a watchdog noses out, while public purse feels financial strains.
In the financial year 2022-2023, the Customs Intelligence and Investigation Directorate (CIID) realised Tk 2.01 billion in additional duties which were intended to be dodged by hundreds of companies.
The amount was Tk 1.29 billion in the previous fiscal year of 2021-2022.
The directorate had realised Tk 670 million only in first four months of the current fiscal year (2023-2024). If the duty is collected at the rate of the first four months of the current financial year, the amount will cross Tk 2.01 billion in the end.
Adip Billah, Joint Director at the CIID, says: "A section of businessmen always try to give false declaration on their imported goods. However, the volume of detected false declarations has increased in the recent years due to increased volumes of import and export after the Corona pandemic."
He adds: After assuming office, the current DG of the CIID has taken several steps, including increasing the vigilance at the customs stations. As a result, the volumes of detected false declarations, smuggled gold, currencies, and drugs have increased.
According to statistics, the CIID filed a total of 867 cases against false declaration of imported goods in the fiscal year 2021-2022.
The worth of the goods involved in the cases is Tk 3.33 billion. Amount of declared duties is Tk 2.33 billion and realised additional duty is Tk 1.29 billion.
In the fiscal year 2022-2023, the CIID has filed a total of 820 cases against false declaration of goods.
The worth of the goods involved in the cases is Tk 4.54 billion. Amount of declared duties is Tk 3.63 billion and realised additional duty is Tk 2.01 billion.
In the first four months of 2023-2024, the CIID had filed a total of 247 cases against false declaration of goods. The worth of the goods involved in the cases is Tk 1.09 billion. Amount of declared duties is Tk 976 million and realised additional duty is Tk 670 million.
Dr Muhammad Abdul Mazid, former Chairman of the National Board of Revenue (NBR), told the FE correspondent that realization of the additional taxes by the intelligence members indicated that the regular customs officials in customs houses had their failure in discharging their duties.
"So, the NBR should take steps for the competence development of their customs officials," added the former NBR chief.
Dr Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB), terms false declaration of imported goods a major means of money laundering.
"As a result, the economy of a country basically suffers from two aspects--- one is tax evasion, another is money laundering."
Dr Iftekharuzzaman opines that when the authorities don't take any legal action against corrupt businessmen even after the detection of fraud and cheating, then they are encouraged to repeat the offence.
He suggests the authorities should take appropriate legal action against the corrupt businessmen, although it is a tough task as the businessmen who are involved with export and import are "influential in society and a portion of the government officials have a good connivance" with them.
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