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Customs Halts Release of 44 Luxury Cars Imported Tax-Free by Lawmakers

The recent decision by the customs department to withhold the release of 44 luxury vehicles imported by former lawmakers under a duty-free facility has sparked controversy and raised questions about the privileges enjoyed by elected officials in Bangladesh. The vehicles, which include mostly Toyota Land Cruisers and Land Cruiser Prados with import prices totaling approximately Tk 61 crore, were imported by former MPs who are no longer serving in parliament.

According to the National Board of Revenue (NBR) data, the import price of these vehicles is staggering, with the cheapest Land Cruiser costing nearly Tk 98 lakh. If the duty is to be paid, the cost of the vehicle would soar to over Tk 8.10 crore. Most of the vehicles were imported from Japan and Singapore and are equipped with powerful 3,000cc to 4,000cc engines, reflecting the luxurious tastes of their former owners.

Lawmakers in Bangladesh are entitled to import a duty-free car once every five years, a privilege that exempts them from paying the exorbitant taxes that can reach up to 810 percent for luxury vehicles. However, with the dissolution of the parliament and the loss of their membership, former MPs no longer qualify for this tax exemption.

The decision to halt the release of these vehicles by the customs department has been met with mixed reactions. Mohammad Fyzur Rahman, commissioner of Chattogram Custom House, explained that the tax-free cars are meant to facilitate parliamentary duties, and since the former lawmakers are no longer serving in parliament, the clearance process has been suspended.

The identities of the importers of the unreleased vehicles have been revealed through NBR documents, with notable figures such as cricket superstar Shakib Al Hasan and former MPs Faizur Rahman, Golam Faruque Pinku, Abul Kalam, Mujibur Rahman Manju, and Jannat Ara Henry among them. However, the bill of entry for three of the 44 unreleased cars was filed under the names of Muhammad Zakaria, Anupam Shahjahan Joy, and Nasima Zaman Bobby.

Customs officials have stated that the release of the vehicles now hinges on paying the required duties, as the tax exemption no longer applies to the former lawmakers. BRTA Chairman Gautam Chandra Pal emphasized the importance of verifying NBR documents when registering vehicles imported under the duty-free facility, highlighting the need for clarity on whether dissolved parliament members can still avail of this benefit.

The duty-free car facility, introduced during HM Ershad’s rule in 1987, has been a contentious issue, with proposals to impose a 25 percent duty on cars for MPs being rejected. The cost of tax exemptions for lawmakers has amounted to Tk 5,147 crore in lost revenue over the last 15 years, underscoring the need for reforms in the system.

As the customs department seeks guidance from the National Board of Revenue on how to proceed with the unreleased vehicles, the issue of tax privileges for former lawmakers continues to be a subject of debate and scrutiny in Bangladesh. The fate of these luxury vehicles serves as a reminder of the complexities and controversies surrounding the perks enjoyed by elected officials and the need for transparency and accountability in governance.

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