Ministry identifies goods, areas sensitive to revenue leakage

KATHMANDU, MAR 27 -

The Ministry of Finance has identified goods and areas that are sensitive to revenue leakages. The ministry’s observation in customs offices has found that revenue leakage takes place in different goods in different parts of the country.

In Jhapa and Morang, smuggling of textiles, marigold, sugar, pulse, fertilisers, betel nut and agriculture products is rampant. Smuggling of betel nuts to India from Bahundagi, Nakalbanda, Bhadrapur and Kakadbhitta of Jhapa is causing a huge revenue loss, according to the ministry. Betel nut is also smuggled from Dhadi in Siraha to India.

India has expressed concerns about the smuggling of third country beetle nuts into India from Nepal.

Illegal trade of daily consumable goods is rife in Lauki and Dewangunj of Sunsari. Although the overall revenue leakage has been controlled largely, leakage from Siraha, Sunsari and Saptari may continue due to the lack of big customs offices there.

In Pashupatinagar of Illam, goods like motor parts and textiles are smuggled. Mobile leakage control teams have not been mobilised in Panchthar and Ilam, which has given rise to revenue leakage, according to the ministry.

Bhairahawa area has been witnessing revenue leakage in sugar and sand exports. People don’t declare the exact quantity of goods there, according to the ministry. Small customs offices in Amuwa, Bethari, Buchi Barewa, Manjariya and Dhumuwa are the hotspots of revenue leakage in Bhairahawa area.

Likewise, spare parts and construction materials are imported through Bethari, Maheshpur of Nawalparasi, Bhujaha and Bishnupura at undervalued rates.

Smuggling of tobacco products, textile, cement, sugar and hardware is the main factor for revenue leakage in Krishnanagar area, according to the ministry.

The country is witnessing revenue loss in sugar, pulse and chemical fertilisers in Sarlahi, and in textile in Gaur, Rautahat.

Kurta, shirting and suiting, sari, motor parts, tube tire, cement, silver, chocolate, mobile battery and electronics are some sensitive items in Birgunj in terms of revenue leakage.

Hardware goods and cement are sensitive in Dhangadi, textile and rubber sandals in Kanchanpur, betel nuts in Banke, fertilisers and motor parts in Bardiya and medicinal herbs in Darchula, according to the ministry.

Dang is seeing revenue loss in textile, hardware, households’ materials and sand exports while Tatopani area is witnessing revenue loss in electronic goods, readymade garments, blanket and shoes.

Baskota said traders use a number of methods for evading tax such as using children, women and disabled for smuggling, under invoicing and using hundi instead of banking channel. “Smugglers were even found establishing warehouses in no man’s land along the border to collect smuggled goods,” said Baskota.

According to the ministry, it has set up a 24-hour control room at the Department of Revenue Investig-ation and is carrying out surprise checks.

Armed Police Force (APF) personnel have been mobilised in 10 customs offices, while APF’s Border Security Force has been mobilised in 64 bordering districts in Tarai, according to the ministry.

Source: Kantipur