BANGLADESH SUFFERS HUGE LOSS DUE TO CHINESE COUNTERFEIT DOCUMENTS

Some Chinese companies are involved in printing and supplying counterfeit documents in Bangladesh, causing huge losses to the government exchequer.

Although the Bangladeshi port authorities suspect the involvement of other Chinese companies in such illegal activities, they were apparently reluctant to take action due to ‘pressure’ from senior officials, reported Bangladesh Live News. Trade-in counterfeit and pirated goods has risen in recent years and it is estimated at about 3.5 percent of global trade by OECD.

The World Customs Organisation estimates that 65 percent of all counterfeit shipments globally originate from mainland China.

According to OECD, trade-in, fake goods which infringe on trademarks and copyrights create profits for organised gangs at the expense of companies and governments. Chinese companies are notorious for faking branded products.

Global Alliance for Tax Justice says, Bangladesh loses USD 143.96 million in tax income each year, or BD Taka 1235 crore, due to global tax evasion by multinational firms and rich people, reported Bangladesh Live News. Despite the fact that the Chinese business had reported the cargo to the Bangladeshi company to include Art/A4 size sheets, it was discovered that they were selling counterfeit band rolls/ stamps. This resulted in fraudulent tax avoidance of over BD Taka 250 crore.

Bandrolls are produced by the Bangladeshi government’s Security Printing Corporation, and cigarette/bidi firms are required to purchase them by paying tax/VAT, also known as cigarette tax. The National Board of Money (NBR) generates revenue by selling these stamps / bandrolls, and no one else is permitted to purchase them other than from NBR.