Tax evasion denting border trade
Source: The Sangai Express

Imphal, October 11 2012: Though it has been 15 years since the Indo-Myanmar border trade through Moreh was formally launched, the Government is earning little revenue from the cross-border trade as majority of the traders have not been paying due taxes.

When the border trade was first launched, it was only 22 items which was agreed for trading between the two countries.

Later based on a notification issued by the Director General of Foreign Trade, Government of India on November 7, 2008, the Central Board of Excise issued a notification which increased the number of sanctioned trade item by adding another 18 items.

As such, the number of sanctioned trade items rose to 40 .

However, the two countries are engaged in legal import-export trade in only five items during the last two years.

According to information received from the Customs Office, out of the 40 sanctioned trade items, only betel-nuts were imported legally from Myanmar between the months of April and September in 2011 and 2012 .

During the same period, cumin seeds, sugar and wheat flour were exported from India.

As a rule, the Customs Office was facilitating the policies and programmes of border trade framed by the Director General of Foreign Trade under the Commerce and Industries Ministry of the Government of India to traders.

The responsibility of the Customs Office is restricted to collection of duty for the items sanctioned for import and export between the two countries.

Traders should carry forward their trade items after first paying duty at the Customs Office.

An official source in Commerce and Industries Department, Govt of Manipur remarked that most of the trade items sanctioned for cross-border trade between India and Myanmar are not commercially viable.

As several taxes are levied on goods taken to Moreh from Imphal for exporting to Myanmar, any article which costs just 10 rupees at Imphal must be exported at Rs 25 at the minimum after reaching Moreh.

As the costs of goods are hiked out of compulsion due to these taxes and other factors, traders are getting little profit.

On the other hand, a large of illegal traders are engaged in the border trade without paying duties, thereby denying substantial amount of revenue to the Government.

Many items which are not included in the list of sanctioned items are also being exported though illegally.

These items are exported under a secret understanding between illegal traders on either side of the border.

Majority of these illegal traders are high-profile individuals.

Speaking strictly in terms of the law they are smugglers, said the official source.

These illegal traders are smuggling even many contraband objects like pangolin scales, Tokay Geckos etc thereby earning huge profits.

Among many measures taken up by the Government to reap due benefits of the border trade, the ongoing border fencing work is a notable one.

At many, smugglers are enjoying undue advantage due to absence of proper border fencing.

If Manipur should reap maximum benefits from the Indo-Myanmar border trade, local produces need to be produced in greater quantities and abundance so that the surplus can be exported through Moreh, added the source.

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