Saturday, June 22, 2024


Dhaka Tribune

Illegal motorcycle import deprives government of tax revenue

Update : 26 Sep 2017, 07:23 PM
Unscrupulous motorcycle dealers are taking advantage of the soaring demand for motorcycles in Dhaka by under-invoicing their imports and paying artificially-lowered taxes to the government. A motorcycle shop  in Moghbazar recently imported 24 motorcycles of two different models from Dolphin Motors in India, selling them for an average of Tk150,000. Depending on the chosen model, the motorcycles cost either Tk87,000 ($1,060) or Tk94,000 ($1,150) to import, but the motorcycle shop  hiked their own profit margin by invoicing them for only Tk70,000 ($855) and Tk79,000 ($965). The total amount of taxed revenue lost by the government due to this single transaction was about Tk98,000 ($12,000). Head of Operations of TVS Auto Bangladesh, Biplob Kumar Saha, suggested increasing tax monitoring and border patrols to curb this illegal activity. “We import motorcycles by paying 150% import tax, while these unscrupulous importers are under-invoicing, costing the government hundreds of thousands in revenue,” he said.
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