NBR forced to waive duty on car imports
The National Board of Revenue (NBR) has withdrawn a provision that barred lawmakers elected in the last two years of parliament from getting tax waiver on car imports.
Following repeated requests by the parliament secretariat, the revenue authority removed the provision on Monday, only four months before the present government’s tenure expires, said an NBR official, seeking anonymity.
More than five newly elected lawmakers are now allowed to import cars without paying customs duty and VAT (value-added tax). They include those declared elected by court in the last year of parliament.
Among the beneficiaries are Rejwan Ahmed Toufiq, elected from Kishoreganj-4 in July, Simeen Hussain Rimi, elected from Gazipur in September last year and Saifuzzaman Chowdhury Jabed, elected from Chittagong-12 in January this year.
Toufiq is the son of President Abdul Hamid, Rimi is the daughter of Bangladesh’s first prime minister Tajuddin Ahmad and Jabed is the son of former lawmaker late Akhtaruzzaman Chowdhury Babu.
The NBR official said taxmen had initially suggested that the authorities refrain from taking such a step as it might spark criticism.
Later, it had to withdraw the bar on instructions of the finance ministry, he added.
Some 315 incumbent lawmakers imported duty-free cars, depriving the state exchequer of more than Tk 1,000 crore in taxes, Finance Minister AMA Muhith had earlier said in parliament.
During the BNP-dominated eighth parliament’s tenure, 275 lawmakers imported luxury vehicles without paying Tk 280 crore in taxes.
The duty and VAT-free car import was first offered to lawmakers in 1988 by the then autocrat HM Ershad. Since then, elected governments have kept the privilege despite criticism.
The provision was cancelled by the Fakhruddin-led caretaker administration but the Awami League-led government restored it.
As of February this year of the present parliament’s tenure, 70 MPs enjoyed tax exemption of over Tk 5 crore each, 55 lawmakers over Tk 4 lakh each and 16 MPs over Tk 6 crore each to import duty-free cars.
Also, 54 MPs got tax exemption of more than Tk 3 crore each, 90 MPs more than Tk 2 crore each and around 60 MPs Tk 1 crore each.
However, at least 35 MPs have not used the controversial facility. They include Leader of the House Sheikh Hasina, Leader of the Opposition Khaleda Zia and ministers AMA Muhith, Matia Chowdhury, Syed Ashraful Islam, Nurul Islam Nahid, GM Quader, Enamul Haque Mostafa Shahid and Faruk Khan.
Courtesy of The Daily Star
