Home ›› 10 Apr 2023 ›› News
As Bangladesh and the rest of the world struggle against the post-Covid and war-induced downturn, money is laundered out of the country through import of illegal foreign cigarettes.
This is happening while there is an ongoing dollar crisis and the government is discouraging import of non-essential items. But illegal cigarettes brought in under false declarations are entering the country’s borders, evading taxes.
Tax intelligence authorities in Chattogram seized illegal cigarettes and fake tax stamps (known as ‘band rolls’) worth Tk4 hundred crores in the past two years. Economists believe that money is being laundered out even during the dollar crisis through this method.
According to information by the Chittagong Customs House, Jong Shine Textile Industries Ltd of Dhaka EPZ brought Tk7 crores worth of illegal cigarettes on 5 September of last year under the false declaration of importing garments products.
Similarly, on 28 February, 2022, Ishwardi’s Tiyani Outdoor imported Tk25 crores of cigarettes under the false declaration of importing thread from China.
On 4 June, 2021, Savar’s Versatile Attire Ltd brought Tk4 crores of illegal cigarettes under the guise of plastic hangers, which are tax-free imports and which allowed it to evade tax worth Tk14 crore, according to officials at the Audit, Investigation and Research (AIR) of the Chittagong Customs.
Another import of illegal cigarettes was caught on 16 March of the same year. Brought in by falsely declaring as A4 paper consignments, the illegal cigarettes would have evaded revenue worth Tk12 crore.
Pabna’s Fujian Export Industry Ltd imported a consignment worth Tk5 crore that was caught with 48 lakh and 28 thousand sticks of illegal cigarettes on 17 February of 2021. On 15 February of the same year, Karim Trading of Riazuddin Bazan in Chattogram imported a consignment declared as containing papers, but had 46 lakh sticks of illegal foreign cigarettes, attempting to dodge Tk11 crore worth of tax.
A businessman at Riazuddin Bazar, wishing to be anonymous, said, “Not just cigarettes, but a lot of products at Riazuddin Bazar are illegal. We are not producing these, these are being imported. So, how are these coming through the authorities? What do the Customs authorities do? We can’t clear our ships carrying onions, can’t clear Ramadan products because of LC. How come these illegal products can enter?”
In December of 2021, fake tax stamps worth Tk120 crore were caught at the Chattogram Port. These were imported as paper consignments by Arafat Enterprise of Chattogram’s Jubilee Road.
Entrepreneurs and economists are warning against the consequences and asking for stricter monitoring. They fear, if the rampant illegal import isn’t stopped then the country’s cigarette market will be captured by black market completely, which will not only put a dent on the revenue income, but will likely be an obstacle to the Prime Minister’s vision of making Bangladesh smoke-free.
Professor of Economics at the University of Chittagong, Dr Mohammad Tarequl Hasan Chowdhury said, “If a product is illegally imported, then it adversely impacts the same product produced locally in the country’s market. The locally produced product cannot cope with the illegal import and falls behind in competition. The government also does not get revenue from these imports, which affects the balance of payment.”
