The government's revenue earning from the cigarette industry, already exists at higher level, could be raised further if customs officials can check fraudulent practices in the sector.
Industry insiders say apart from using counterfeit band rolls or tax stamps the cigarette manufacturers utilise the service of local importers to bring in raw materials under false declaration.
A trader involved in the business for the last 30 years said the use of counterfeit tax stamp is rampant in factories located outside Dhaka area for various reasons.
"A simultaneous and surprise inspection at the factories will help detect the anomaly," he said.
Sources in British American Tobacco, Bangladesh (BATB), the largest tobacco manufacturer in the country, expressed their ignorance about the malpractice, but said that there is every possibility of doing so mainly by those who import the items, including packing materials and cigarette paper.
Another trader said the manufacturers may not be directly involved in under-invoicing, but they engage importers to bring in the raw materials under false declaration regularly and share the benefit by way of getting the materials at lower cost.
According to market information, the current price of BOPP film, a packing material for the cigarette industry, currently costs US$ 2.60 per kilogram (kg). But these are being brought in showing a unit price of US$ 1.20/kg. Same is the situation with cigarette paper, whose actual value is US$ 2.0/kg, but its price is shown at US$ 0.90 to US$ 1.20/kg. Apart from import duty there is supplementary duty. "When the declared value is lower, the evasion of duty is higher," he added.
Insiders said there are many tricks involved, such as declaring BOPP film as plastic film and cigarette paper as base paper or printing paper. This is possible if the importers have arrangements with the authorities concerned, sources added.
It is learnt that there are companies being operated under different names by the same proprietors. Apart from the raw materials they bring in costly spare parts as sample of 'no commercial value' and clear them at the airport and defrauds the government of due revenues.
"There are surely many such companies doing similar practices," one trader said.
A joint commissioner of NBR said they heard about the allegations, but said it is very difficult on their part to identify the persons responsible. He, however, said efforts are underway to detect the traders responsible for this.
