Proposed budget brings tax burden for car imports by MPs

There is bad news for members of the 12th parliament, with Finance Minister Abul Hassan Mahmood Ali presenting the 53rd budget of Bangladesh in the House on Thursday.

One major decision in the budget was a 25% duty and 15% VAT on car imports by members of parliament. If this is implemented, lawmakers will have to pay 40% in duties and VAT on car imports.

Currently, MPs can import cars duty-free. However, to reduce disparities, the prime minister has agreed to do away with this privilege.

"Presently exemption of all types customs duties and taxes exists on import of one car/jeep/microbus by the honourable members of parliament. We are encouraging everyone to pay taxes and to come out of the culture regarding tax exemptions. A noble example will be set if public representatives amend this privilege and lead everyone to come out of the tax exemption culture.

"An amendment in the relevant order can be made to achieve this goal. I am requesting the honourable minister concerned to make necessary amendments in the Members of Parliament (Remuneration and Allowances) Order, 1973 accordingly," the minister said while unveiling the proposed budget for FY25.

Finance Minister Abul Hassan Mahmood Ali presented the proposed budget for the 2024-2025 fiscal year amounting to Tk797,000 crore (Tk7.97 trillion) in parliament on Thursday.

This was his first budget unveiling and the first budget after the reelection of the Awami League government in January.