Finance Minister Abul Hassan Mahmood Ali on Thursday requested the members of parliament to set a noble example by amending the privilege of importing duty-free cars for personal use.
The minister made the proposal while placing his budget speech in parliament and requested the concerned minister to make necessary amendments to 鈥楾he Members of Parliament (Remuneration & Allowances) order, 1973鈥� that enabled the lawmakers to import duty-free cars.
The proposal came in the backdrop of the National Board of Revenue鈥檚 initiative to impose a 25 per cent duty on car imports by lawmakers, partially withdrawing the duty-free facility for them to import cars for personal use.
While placing his budget speech, the minister said, 鈥楶resently exemption of all types Customs duties and taxes exists on import of one Car/Jeep/Microbus by the honourable Members of the Parliament. We are encouraging everyone to pay tax and to come out of the culture regarding tax exemption.鈥�
鈥楢 noble example will be set if the public representatives amend this privilege and lead everyone to come out of tax exemption culture. Amendment in the relevant order can be made to achieve this goal. I am requesting the concerned honourable minister to make necessary amendment in 鈥淭he Members of Parliament (Remuneration & Allowances) order, 1973鈥� accordingly,鈥� he said.
Parliament members have been availing of duty-free car import facilities for 36 years, resulting in huge revenue losses for the government.
At present, ordinary citizens have to pay between 45 per cent and 500 per cent for importing cars, depending on the cubic centimetres of their engines.
The privileges of parliament members are being partially withdrawn under the prescription of the International Monetary Fund, according to NBR officials.
The duty-free car facility for lawmakers was initiated by the HM Ershad government in 1988.
The Bangladesh Nationalist Party and the Awami League, which came to power, did not withdraw the facility, enabling lawmakers from all political parties and reserved seats for women lawmakers to enjoy the privilege.
A lawmaker is allowed to avail of the facility once during his or her five-year tenure. The lawmakers are not allowed to resell the cars imported using this facility.
According to NBR officials, the country lost Tk 5,147 crore in revenue in the past 15 years due to a duty waiver for lawmakers for car imports.
Lawmakers imported 572 vehicles under the duty-free benefit between January 2009 and April 15 this year, NBR鈥檚 import data said.