The total revenue collection from car imports fell by Tk 5.0 billion last fiscal year, though importation of luxury versions rose substantially.
The import of luxury cars categorised as 4001 CC and above slab climbed by 855 per cent in fiscal 2017-18 compared with that of the previous year, but revenue receipts showed a downtrend.
Such cars are subject to the payment of the highest 827 per cent import tax.
The import tax declined by Tk 120 million for this category of cars in the last fiscal compared with a year ago, despite a rapid pick-up in import.
The National Board of Revenue (NBR) received Tk 1.14 billion taxes against the import of 1,539 luxury cars that are 4001 CC and above in FY 2017-18, the board's data showed.
In contrast, the national tax collector received Tk 1.26 billion duty against the imports of 161 similar category cars in 2016-17.
Talking to the FE, customs officials, preferring anonymity, said the increase in duty-free cars by lawmakers and project officials marked a sharp rise in the last fiscal, which led to the fall in revenue collection.
They said as the 2018 was an election year, some of the lawmakers availed the facility before their tenure ended.
Also, many of the cars were imported for the government's ongoing development projects, they added.
The board, however, did not track how many cars were imported under the tax-free facility last year by members of parliament (MPs) or project officials.
According to import revenue data, the government lost revenues of Tk 2.21 billion in FY 2018 for offering tax exemption to the MPs alone.
Under the existing customs law, MPs and some of the government projects are entitled to enjoying duty-free facility on the imports of cars and jeeps.
Analysing the import data of customs wing, the FE found the inconsistencies between import of motor cars and its revenue collection.
The import of cars -- old and new -- increased by almost a quarter during the last fiscal.
A total of 40,278 cars entered the country in FY 2017-18, compared with 32,398 in the corresponding year.
The tax collector received Tk 35.56 billion taxes from the import of cars or jeeps last fiscal, down from Tk 40.66 billion in FY 2016-17.
According to the data, import value of those cars also increased by Tk 2.11 billion in FY 2017-18 compared to the previous year.
The FE analysis also found revenue collection dropped significantly in 1601 CC to 2000 CC slab imported cars.
On this slab, the government's revenue collection dropped to Tk 6.92 billion last year against Tk 13.12 billion in FY 17. The number of imported cars in this slab also declined to 1,843 units from 2,713.
When contacted, Customs (valuation and internal audit commissionarate) commissioner Nuruzaman Khan, then commissioner of the Chittagong Customs House (CCH), said Mongla, Internal Container Depot (ICD), Kamalapur and Chittagong port are the entry points of cars.
"I am not exactly aware of how customs assessment is done in other ports," he added.
Talking to the FE, a senior customs official said a change in duty structure in the budget for FY 2017-18 is mostly responsible for decline in revenue collection from this CC slab cars.
In the budget for FY 18, the government revised the duty-slab by allowing cars up to 1,600 CC enjoy the lowest import tax, which was valid for up to 1,500 CC cars.
However, some 36,299 units of cars up to 1,600 CC slab were imported in FY 18. On the other hand, some 28,314 cars of 1,500 CC slabs were imported last year.
Total tax incidences for the import of cars under different CC slab are 128 per cent for cars up to 1,600 CC, 212 per cent for 1,601 CC to 2,000 CC, 366 per cent for 2,001 to 2,750 CC, 596 per cent for 3,001 to 4,000 CC and 827 per cent for 4,001 CC and above.
However, reconditioned vehicle importers enjoy depreciation facility on the price of the imported cars on the basis of its fuel-bearing capacity.
BARVIDA president Habibullah Dawn said they have imported some 23,000 used cars in FY 18 compared with 20,000 a year earlier.
doulot_akter@yahoo.com