Newly elected lawmakers from BNP and Jamaat-e-Islami say they will not use the long-standing duty-free car import facility available to members of parliament.
BNP made the announcement on Tuesday, following a similar declaration by Jamaat earlier. National Citizen Party (NCP) and other parties with newly elected MPs have not yet issued any statements on whether they will reject the facility.
Officials at the National Board of Revenue (NBR) said the decision could clear the way for abolishing the “discriminatory” privilege in the upcoming 2026–27 national budget.
According to NBR officials, the revenue authority had proposed imposing a 25 per cent customs duty on vehicles imported by MPs in 2024, but the move was not implemented due to resistance from lawmakers.
This time, however, since MPs themselves have declared that they will not take the benefit, the government may face little obstacle in scrapping the facility altogether.
Dr Zahid Hussain, former lead economist at the World Bank Dhaka Office, termed the announcement a positive step.
“Lawmakers are elected on a political mandate. If they enjoy personal privileges under that mandate, it sets a precedent for others, particularly bureaucrats, to seek similar benefits,” he told TIMES of Bangladesh, adding that the decision sends a strong message against unethical advantages.
Under the existing law, a regular importer bringing in a car worth Tk1 crore must pay a 25 per cent import duty and up to a 500 per cent supplementary duty, pushing the total cost to around Tk6.5 crore.
In contrast, MPs have been allowed to import such vehicles without paying customs duty, VAT, development surcharge, or import permit fees.
According to NBR data, lawmakers imported 572 vehicles under the duty-free facility between January 2009 and 15 April 2024. The total customs-assessed value of those vehicles stood at approximately Tk397.38 crore.
Officials estimate that the government waived at least Tk5,147 crore in revenue against these imports during the period.
Considering the substantial revenue loss, the government proposed in the 2024–25 budget imposing a 25 per cent duty on vehicles imported by MPs. The proposal, however, was dropped following objections from lawmakers.
NBR officials said that if the facility is fully withdrawn, the state could save between Tk1,500 crore and Tk2,000 crore. The duty-free car privilege was introduced in 1987 during the rule of military ruler Hussain Muhammad Ershad.
A gazette notification issued on 24 May 1988 allowed an MP to import one car, jeep, or microbus during his or her tenure without paying customs duty, VAT, development surcharge, or import permit fees, subject to government specifications.
Khandaker Golam Moazzem, research director at the Centre for Policy Dialogue, said refraining from such privileges would set an important example.
“Those who serve the republic should avoid enjoying additional privileges. If implemented, this will set a precedent,” he said, adding that scrapping the facility would also strengthen oversight and reduce the scope for granting unethical benefits to businesses.
With newly elected MPs from major political parties publicly rejecting the benefit, the upcoming budget may finally see the end of a controversial privilege that has remained in place for nearly four decades.
