Bill passed in parliament: Duty-free car benefit for MPs abolished
The Members of Parliament (Remuneration and Allowances) (Amendment) Bill has been passed in the National Parliament, abolishing the provision that allowed MPs to import vehicles duty-free.
The bill was placed in parliament on Sunday (26 April) by Law Minister Asaduzzaman and was subsequently passed.
Explaining the rationale behind the move, the minister said, “After being elected on a commitment to serve the people, allowing MPs to import duty-free vehicles in their own names is not consistent with that pledge.
At the same time, such tax exemptions create a visible disparity between elected representatives and the citizens,
who are the rightful owners of the state.”
The decision follows an earlier approval at a cabinet meeting held on Thursday night, 23 April, and was formally adopted in Parliament on Sunday through a voice vote.
Officials concerned said the measure is intended to reduce special privileges for public representatives and government offices, while promoting greater equity within the tax system.
According to a summary submitted by the Finance Division to the President, the salaries and benefits of MPs are governed by The Members of Parliament (Remuneration and Allowances) Order, 1973, under which they were previously entitled to import vehicles without paying duties.
The summary noted that, although MPs are elected on a mandate to serve the public, the continued use of such legal privileges creates a disparity between representatives and ordinary taxpayers, and appears inconsistent with electoral commitments.
In this context, and in line with the Prime Minister’s position, the government deemed it necessary to review the provision in light of current economic conditions and public sentiment.
The cabinet subsequently approved the proposal to abolish the benefit, citing the need to reduce public expenditure, strengthen transparency and accountability, and maintain fiscal discipline.
Earlier, Finance Minister Amir Khosru Mahmud Chowdhury had informed the media that a decision had been taken at the first meeting of the parliamentary party not to accept additional privileges for public representatives.
The process of amending the relevant 1973 order had since been underway.
The issue had also been discussed under the previous Awami League government, whose activities are now banned.
In the 2024-25 budget, then Finance Minister Abul Hassan Mahmud Ali proposed removing the benefit, but the measure was not adopted following objections from MPs.
Originally introduced during the Ershad administration in 1987, the duty-free vehicle facility has long faced criticism for granting tax concessions on high-value imports.
Officials from the National Board of Revenue (NBR) stated that between January 2009 and 15 April 2024, MPs imported a total of 572 vehicles under this provision.
The customs value of these vehicles was approximately 3.97 billion taka, while the associated revenue concessions amounted to at least 51.47 billion taka.
