Bangladesh pulls the plug on duty-free cars for MPs

The finance minister is ending the tariff privileges on imported cars

The government has decided to pull the reins on the exemption of duty-free cars for the members of the 12th parliament in the new budget.

Finance Minister Abul Hassan Mahmood Ali proposed the elimination of tariff privileges on imported cars during his budget speech on Thursday.If the proposal is passed, the MPs will have to pay 25 percent in customs duty and VAT on imported cars at the rate of 15 percent from the next financial year 2024-25.

If approved, MPs will be required to pay 25 percent in customs duty and VAT at a rate of 15 percent on imported cars starting from the 2024-25 financial year beginning on Jul 1.

“Everyone is being encouraged to pay taxes in order to put an end to the tax exemption culture at all levels. Changing the right of MPs to import cars without paying import duties will set a great example for the people to follow,” said Ali.

The finance minister suggested incorporating the necessary amendments into the president's order, "The Members of Parliament (Remuneration and Allowances) Order, 1973."

For the past 36 years, members of parliament have benefited from tax exemptions. On May 24, 1988, the government issued a notification allowing MPs to import cars without paying import duties.

Currently, import duties ranging from 100 to 500 percent of the total car value are levied on buyers, along with various other duties and taxes.

A member of parliament is permitted to import one duty-free vehicle—whether a car, jeep, or microbus—free from development surcharge and import permit fees during their term.

MPs, including the prime minister, speaker, ministers, leader of the opposition, deputy leader of parliament, deputy speaker, chief whip, deputy leader of the opposition, state ministers, whip, and deputy ministers, have the privilege of importing vehicles duty-free.

A member can import a new duty-free vehicle five years after the previous import.