E-Kantipur

KATHMANDU, NOV 16 -

Importers may have to declare maximum retail prices (MRPs) of additional 14 products at customs points. The finance ministry recently approved the list of the products proposed by the Department of Customs (DoC).

A majority of the items are electronics such as televisions, refrigerators washing machines, microwave ovens, air conditioners, digital cameras and camcorders. Other items include branded wrist watches, branded shoes, kitchen chimneys, marble/granite/tiles, colour/paints.

Currently, only automobile importers are declaring MRPs. The ministry has asked the department to implement provision in import of these new items at the earliest by formulating a regulation.

Santa Raj Subedi, joint secretary at the Finance Ministry, said the ministry has approved all the items proposed by the department. “We have asked the department to carry out a rigorous homework on when and how to implement the provision,” he said.

The department’s move is aimed at discouraging under-invoicing of imported goods. Rampant under-invoicing of imported goods at custom points has also emerged as the main reason behind the latest tax evasion episode in which businesses were found to be using fake VAT receipts.

Since importers actually pay more amounts for imported goods than that declared at custom points, the difference between the retail price and the price declared becomes huge, eventually hurting the government’s revenue. With the MRP declaration provision, importers and retailers cannot manipulate customs rules and cheat customers, department officials say. “The main purpose of putting in place the MRP declaration provision is to discourage under-invoicing,” said Ananda Dhakal, deputy director general at DoC.

However, another department official said putting in place the provision for such a large number of items is not a wise move, but they should be regulated strictly.

“This is why we are still not sure whether the provision will be implemented for all the 14 products,” said the official. Initially, the department had planned the provision for 10 products.

According to department officials, the final list of items whose MRPs are required to be declared will be announced within next two days after necessary discussions.

Dhakal said the department is currently preparing a draft regulation for effective implementation of the provision. “We have finalised the draft and will introduce it along with the list of the items within a couple of days,” he said.

Posted on: 2011-11-16 09:17

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