Many importers are providing false information of importing of food-products and raw materials of medicines and importing cigarettes of various foreign brands instead. As a result, a big amount of dollar is being spent over this illegal import, which is deepening the current dollar crisis. Because of this misrepresentation of imported products, the government is losing revenue of almost Tk 1000 crore each year.
Recently, huge amount of cigarettes are being imported without noticing the National Board of Revenue. The importers are selling these cigarettes in huge quantity by presenting it having less nicotine. However, the experts think its bringing harmful effect on public health, besides the loss of revenue by the government.
According to the sources, the import of foreign cigarettes has been increased after the outbreak of Covid-19. For this, the NBR asked its duty investigation department to be more alert.
According to sources, these cigarettes spread across the country and as the cigarettes are available in low price and contain multiple flavors, the people of young generation are being attracted to it alarmingly.
On the condition of remain anonymous, one additional secretary of finance department said, “We’ve received a report from VAT Audit, Intelligence & Investigation Directorate in this regard. Investigation cell of Bangladesh Bank is also working on this issue.”
According to the sources of finance division and NBR, due to the availability of these foreign cigarettes, the government is in fear of achieving less revenue this year than that of previous year. Already, from high cost cigarettes, 5% fewer revenue has been recorded in first six months of this year compared to first six months of last year. Besides, in a letter of VAT Audit, Intelligence & Investigation Directorate, it has been stated that the government will lose at least Tk 800 crore due to the cigarettes imported by giving false information.
According to a report of NBR, a powerful syndicate is involved in importing foreign cigarettes, who conducts their operation through Chattogram sea port and airport. The smugglers store the cigarettes in rented flat and then sell it to the retailers and wholesalers across the country.
In last two years, around 90 crore pieces of illegally imported cigarettes have been confiscated from Chattogram sea port and airport. The market price of these confiscated cigarettes is TK 200 crore.
According to the economists, this smuggling is happening due to lack of proper monitoring of government and proper legal procedures.
To import cigarettes legally, the traders have to pay a total 602% various tax and duty. Hence, the customers have to pay higher price to purchase it. But, the smuggling syndicate are importing the cigarettes by providing false information and selling it at very low prices. The money generated by selling of these cigarettes is going out of the country by hundee.
In order to reduce health risk and increase revenue, the government has been increasing the cigarette price each year. The price of cigarettes has been doubled in last five years.
According to the information of World Bank, the number of cigarette-consumers was reduced by 9.3% in between 2010 to 2020. And according to the information of World Health Organization in 2021, cigarettes are sold at cheaper prices in at least 58 countries in the world and from these countries cigarettes are being imported in illegal ways into the country. These brands are being sold at almost half of the prices compared to the same standard locally manufactured cigarettes of foreign brands. For example, the price of one packet of locally manufactured Benson & Hedges cigarettes is Tk 320, whereas one packet of foreign brand Oris is available at Tk 120 to 140. Because of these illegally imported low-priced cigarettes, the government is losing huge amount of revenue each year.
@The report was published on print and online versions of The Bangladesh Pratidin on Januray 30 and rewritten in English by Lutful Hoque
