When will MPs lose duty-free car facility?

Finance minister Abul Hassan Mahmood Ali in a post-budget conference today could not specify when lawmakers would lose their duty-free vehicle import privileges, which he had proposed in his budget speech on Thursday.

The minister was visibly angered when journalists asked him about his propsal’s enforcement at the event held at the Osmani Memorial Auditorium in the capital.

“There is a provision for amending the law in the budget, it will be done. Now, you say when and I will do it, that is not how it happens,” he told the reporter who asked him about the time frame.

However, Mashiur Rahman, economic affairs adviser to the prime minister, said the privilege was given to MPs when former president Ershad was in power.

“After giving someone some privilege, it is very difficult to take it back,” he added.

He said the government and the finance minister should be thanked for coming up with the tough proposal.

During his budget speech on Thursday, the finance minister encouraged everyone to avoid seeking tax exemptions and asked the relevant minister to amend the laws related to tax exemptions for duty-free car imports for parliament members.

According to officials, the National Board of Revenue wants to impose 25% customs duty and 15% VAT on import of cars for lawmakers.

Like duty free import of cars, the remuneration of MPs has also been tax-free for decades.

The then parliament in February 2012 passed two bills, scrapping “discriminatory” provisions from two laws that exempted the speaker, deputy speaker and MPs for around 38 years from paying taxes on their remunerations.

Eventually, the AL-led government moved to scrap the provision, termed “discriminatory” by the then law minister Shafique Ahmed, who placed the two bills in February.

“Usually, any Bangladeshi’s income above a certain limit is taxable. So, there is discrimination between the common people and the MPs regarding taxation,” the law minister said in his brief statements tagged with copies of the bills.

The original law of 1973 did not contain any such provision. It was introduced in May 1987 during Ershad’s rule to give MPs undue benefits.