For the first time in 36 years, the tax-exemption on car imports for Members of Parliament (MPs) in Bangladesh is set to be revoked in the upcoming budget, according to sources from the Ministry of Finance.
The new budget will require MPs to pay a 25% import duty and a 15% value-added tax (VAT) on car imports.
This change is part of a larger initiative to boost revenue as Bangladesh seeks a substantial loan from the International Monetary Fund (IMF) to address its foreign currency reserve crisis. According to the conditions of the IMF loan, the government must gradually withdraw tax exemptions to increase revenue. As a part of this strategy, the government plans to revoke the tax exemption on car imports for MPs.
Sources from the National Board of Revenue (NBR) indicated that most MPs import various brands of cars from Japan, including popular models like Toyota Land Cruiser, Range Rover, and Mitsubishi Pajero.
Ordinary citizens must pay import duties ranging from 100% to 500% on these cars. In addition to import duties, supplementary duties and VAT are levied based on the engine capacity of the vehicle.
It is worth noting that on May 24, 1988, the then Ershad government issued a notification granting MPs exemption from all types of duties and taxes on car imports, a benefit that is still in effect today.
