Tax-free import by lawmakers: Customs halts release of 44 luxury cars

The customs department is not releasing 44 luxury vehicles that former lawmakers imported under a duty-free facility.
Customs halted the release because those who imported the vehicles are no longer MPs.
Before the Awami League government fell early this month, seven cars brought under the provision were released, but the vehicles have not been registered with the Bangladesh Road and Transport Authority (BRTA) yet.
NBR data shows that the import price of these 51 vehicles — mostly Toyota Land Cruisers and Land Cruiser Prados — is approximately Tk 61 crore.
The cheapest Land Cruiser was imported for a little under Tk 98 lakh. If the duty is to be paid, the vehicle would cost over Tk 8.10 crore.
Most of the vehicles were imported from Japan and Singapore and have 3,000cc to 4,000cc engines.
Lawmakers are entitled to import a duty-free car once every five years. The tax on such vehicles can be up to 810 percent, but MPs do not have to pay it.
When President Mohammed Shahabuddin dissolved the parliament on August 6, a day after former prime minister Sheikh Hasina resigned and fled the country amid an unprecedented student-led mass uprising, the lawmakers lost their membership in parliament and the privileges, like tax free cars, that come  with it.
Talking to The Daily Star, Mohammad Fyzur Rahman, commissioner of Chattogram Custom House, said, “The MPs get the tax-free cars to carry out parliamentary duties. We halted the clearance process of these cars because these will not be used for parliamentary duties.”
According to NBR documents, the seven cars that have been released from Chattogram, Mongla ports and Kamalapur ICD, were imported by cricket superstar Shakib Al Hasan, who was an MP from Magura-1; Faizur Rahman from Brahmanbaria-5; Golam Faruque Pinku from Lakshipur-3; Abul Kalam from Natore-1; Mujibur Rahman Manju from Kishoreganj-5; and Jannat Ara Henry, an MP of a reserved seat for women. The identity of one other ex-lawmaker has not been conformed.
The bill of entry (the submission of import documents) for three of the 44 unreleased cars were filed in the name of Muhammad Zakaria from Dinajpur-1, Anupam Shahjahan Joy from Tangail-8, Nasima Zaman Bobby, an MP of a reserved seat for women.
The former lawmakers could not be reached for comments.
Customs officials said the identities of the other 41 former lawmakers would be known when import documents are filed.
According to documents, clearing and forwarding (C&F) agents, including Navana Ltd, facilitated the release of the seven vehicles on behalf of the importers.
Ripon Prakash Das, assistant general manager of C&F Agent Navana Ltd, said some vehicles were released under the names of former MPs.
“The release of these vehicles from the port requires an approval letter from the parliament speaker. The letter is not attainable now,” he said.
Customs officials said the cars now must be released by paying the duties.
Chattogram Customs Commissioner Fyzur said they cannot seize the vehicles that were released before the parliament was dissolved.
The customs will seek instructions from the National Board of Revenue, he added.
BRTA Chairman Gautam Chandra Pal told The Daily Star that no vehicle brought under the duty-free facility has been registered in August.
“We verify NBR documents when registering vehicles imported by MPs under the duty-free facility. The law does not mention whether the members of a dissolved parliament can avail the benefit.
“There is a way to stop the registration of these vehicles and collect the duty if the NBR or the law ministry instructs us not to register them.”
The duty-free car facility was introduced during HM Ershad’s rule in 1987 to please lawmakers. A notification in this regard was issued on May 24, 1988.
In the budget for fiscal year 2024-25, a proposal was made to impose 25 percent duty on the cars for MPs. The proposal was not accepted.
The tax exemption cost the government Tk 5,147 crore in lost revenue over the last 15 years.