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TL;DR
- Bangladesh’s interim government will sell 52 luxury cars imported duty-free by former MPs to collect customs taxes.
- The vehicles, primarily Toyota Land Cruisers, remain at the port and were imported before the recent government change.
- The sale aims to prevent revenue loss, as returning the cars would forfeit potential tax income.
- The duty-free import privilege for MPs has been controversial, costing the government significant revenue over 15 years.
The interim government of Bangladesh has announced plans to sell 52 luxury vehicles that were imported duty-free by former members of the now-dissolved 12th Jatiya Sangsad. This decision was revealed by Salehuddin Ahmed, the finance and commerce adviser, during a press briefing on August 28, 2024, following a meeting with business leaders at the Bangladesh Secretariat.
The vehicles, which remain at the port, were imported before the ousting of the Awami League-led government earlier this month. The National Board of Revenue has been tasked with overseeing the sale of these cars, which are primarily from the Toyota Land Cruiser series. The sale aims to collect customs taxes, as sending the cars back would result in a loss of revenue for Bangladesh. “The duty-free cars imported by former MPs stuck at the port will not be sent back. Bangladesh will lose revenue if they are sent back,” Salehuddin stated.
The duty-free import privilege for lawmakers has been a contentious issue in Bangladesh. Originally introduced in 1987 during the regime of Hussain Mohammad Ershad, the facility was meant to reward lawmakers but was later scrapped by a caretaker government in 2007 due to allegations of abuse. However, it was reinstated in 2010, allowing MPs to import one vehicle during their tenure without paying customs duty, sales tax, development surcharge, and import-permit fees.
The import of luxury cars has seen a significant increase in recent years, despite Bangladesh facing a foreign-exchange crunch. In 2023, the number of luxury cars imported tripled compared to the previous year. This surge has raised concerns about economic management and income inequality in the country. According to customs data, the duty-free benefit has cost the government approximately Tk 5,147 crore in lost revenue over the past 15 years.
The decision to sell the 52 vehicles comes amidst discussions about imposing a 25 percent import duty on cars for lawmakers, as proposed by the National Board of Revenue. This proposal, aimed at improving Bangladesh’s low tax-GDP ratio, is part of broader efforts to reform the tax system and address the misuse of duty-free privileges by lawmakers.
Source: TBS News
