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MPs stripped of duty-free car privilege
Daily Sun Report, Dhaka
Published: 27 Apr 2026, 12:00 AM
In a decisive move to curb public spending and bridge the gap between the ruling class and the citizenry, Parliament on Sunday passed a bill abolishing the long-standing privilege that allowed lawmakers to import luxury vehicles duty-free.
The amendment to the Members of Parliament (Remuneration and Allowances) Order, 1973, was cleared without debate during a session chaired by Speaker Hafiz Uddin Ahmad.
The measure, which now awaits presidential assent to become law, effectively ends an era of tax exemptions that has cost the exchequer billions of taka in lost revenue.
Once enacted, lawmakers will be required to follow the same standard import taxation rules as ordinary citizens.
Law Minister Asaduzzaman, who placed the bill before the House, saw it passed by a majority voice vote.
The legislative shift follows years of controversy surrounding the scheme.
Internal data reveals that between 2009 and 2023, MPs imported 576 duty-free vehicles.
While the import cost of these cars stood at approximately Tk428 crore, the resulting loss in customs duties exceeded a staggering Tk3,500 crore.
Beyond the fiscal strain, the system was frequently dogged by allegations of abuse.
Sources indicated that many former lawmakers exploited the facility for personal financial gain, often selling their high-end vehicles to third parties shortly after import – a direct violation of the privilege’s intended purpose.
The crackdown aligns with a broader policy shift under the current administration.
Prime Minister Tarique Rahman had previously instructed BNP lawmakers to forgo the facility upon taking their oaths in February, while the Bangladesh Jamaat-e-Islami-led 11-party alliance made similar pledges ahead of the national election.
Under the previous Section (3C) of the Act, now abolished, an MP was entitled to import a car, jeep, or microbus every five years without paying duties, development surcharges, or import permit fees.
The reform has been met with praise from civil society. Transparency International Bangladesh (TIB) lauded the decision, describing it as a "significant step" towards ensuring transparency and accountability within the state apparatus.
While the tax break is being scrapped, the government is reportedly considering an alternative proposal from an opposition lawmaker.
The suggestion involves the state providing official vehicles to MPs, bringing their logistics in line with those allocated to district and upazila chairmen and senior civil servants. Ministers have confirmed the proposal is currently under consideration.
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