Desperate to give a boost to its revenue collection, the National Board of Revenue (NBR) is set to send a letter today to all ministries, embassies, high commissions and donor agencies to know the whereabouts of duty-free imported vehicles.
The NBR has taken the move to know the actual positions of the duty-free luxurious cars apprehending that those are being used on other purposes avoiding taxes.
"Yes, we've prepared a letter and we'll release it tomorrow morning," an NBR official told the news agency.
According to the existing law, embassies, high commissions and donor agencies, and projects taken under these institutions, can enjoy the privilege of duty-free import of vehicles. But the vehicles must be used for the purpose for which those have been imported. And even the donor-funded projects under any ministry cannot use those for the ministerial purpose.
"We've evidences that the duty-free imported vehicles are being used for other purposes by ministries, embassies, high commissions and donor-agency offices," the NBR official said.
He said after the particular job (for which the vehicle was imported) it has to be exported or it can ply local roads after properly clearing duty and other taxes. "Even the vehicle cannot be included in the vehicle pool of government as it (govt) cannot buy old vehicles," he said.
After response from the ministries, embassies, high commissions and donor agencies regarding the vehicles, the NBR will then examine whether those are in right condition.
"And then we'll impose duty and tax on the concerned ministries, embassies, high commissions and donor agencies if they are not using the vehicles in proper way or using those on completion of the projects," he said.
He said the government allowed the embassies and high commissions to import duty-free vehicles for their offices in line with the Geneva Convention. "That doesn't mean that the duty-free imported vehicles will be used on other purposes," he said.
The NBR is now desperate to increase its revenue collection from all possible areas as the collection up to April 26 of the current fiscal falls short of its target. It earned Tk 35126 crore which is 64.45 per cent of the total target with 12.21 per cent growth. The target for the fiscal 2008-09 fiscal is Tk 54500 crore.
During the period (as of April 26), the revenue earnings from import duty stood at Tk 6540 crore with 1.55 per cent growth, while VAT at import level at Tk 6391 crore with 12.10 per cent growth and supplementary duty at import level at Tk 1634 crore with 25.60 per cent growth.
The earnings from excise duty stood at Tk 233 crore with 9.93 per cent growth, while VAT at local level at Tk 7395 crore with 18.79 per cent growth and supplementary duty at local level is Tk 4431 crore with 2.59 per cent growth. |
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