Public administration ministry gets 31 uncleared cars imported under MP duty-free scheme

The NBR says highest duty on a single vehicle is Tk 94.4 million, lowest Tk 86.2 million

The Ministry of Public Administration is set to receive 31 luxury vehicles imported under duty-free privileges by former members of parliament (MPs).

The decision was made at an inter-ministerial meeting after the Chattogram Port Authority failed to secure expected bids for the cars in an auction.

Officials have decided to hand the vehicles over to the ministry “in the public interest”.

Following the meeting, the National Board of Revenue (NBR) issued a special order on Wednesday approving the transfer.

The order, however, includes a condition that if any of the original importers later choose to clear their cars by paying applicable duties, the ministry must return those vehicles.

The cars were brought in by MPs of the now-dissolved 12th parliament under a duty-free import quota.

None of the vehicles were released from port after the fall of the Awami League government on Aug 5, 2024.

According to the NBR order, the total payable duty on the 31 high-end vehicles would amount to Tk 2.69 billion if imposed.

The highest duty per car stands at Tk 94.48 million, while the lowest is Tk 86.27 million.

MPs were previously exempted from paying duties on such imports.

Since parliament has been dissolved, the NBR has ruled that clearing the cars now would require full payment of duties.

The Chattogram Custom House had earlier sought clarification on if the vehicles, imported under the Awami League administration, should now be subject to standard duty.

In response, the NBR said: “Duty-free privileges will no longer apply to the vehicles imported by members of the dissolved parliament. The importers may clear the cars by paying regular duties and taxes.”

It added that if an importer wishes to clear a vehicle in the future, the Chattogram Custom House must determine the applicable value and duty in line with relevant customs laws and procedures before releasing the vehicle.

The special order specifies that if the Custom House allows any importer to reclaim their car upon payment of duties, the Department of Government Transport must return the vehicle to customs for clearance.