NBR prefers duty-free import of medium-range cars for MPs
Wednesday, 9 December 2009
Doulot Akter Mala
The revenue board prefers duty-free import of medium-range four wheelers --- not luxury ones --- for the country's 300 plus lawmakers in an effort to save billions of taka in drained-out taxes, officials said Tuesday.
Officials said the government could lose revenues up to Tk 6.00 billion this year if the authorities allow the members of parliament to import luxury sedans or Sport Utility Vehicles (SUVs) without paying customs duties and other taxes.
"We would rather prefer the government to permit duty-free import of medium range four wheelers for the lawmakers so that they can visit their rural constituencies with the cars," said a senior National Board of Revenue (NBR) official.
"We will only lose an average Tk500,000 -Tk1.0 million in revenue if a lawmaker is allowed to import duty-free medium range four-wheeler," he said.
The board has not made the suggestion to the government yet, but officials said the import of zero-tax luxury cars would seriously undermine the NBR's efforts to raise revenues in a difficult year when the country is facing full-brunt of the global economic recession.
A luxury car such as Mercedes Benz S Class, Toyota Lexus SUV, and the much talked about Hummer is entailed with 509 per cent customs and supplementary duties under the present tax laws.
"So if we allow someone to import a high luxury car such as Hummer, it may lead to revenue loss of nearly Tk30 million," said the official.
NBR officials aired their views amid fresh moves by the parliament secretariat to allow duty-free import of cars for the country's 345 lawmakers including 45 women legislators.
Successive governments since the late 1980s has allowed duty-free import of luxury cars, resulting in a serious abuse of the facility as lawmakers pocketed the duties by selling their import permits to the tycoons.
The abuse and the loss of some billions of taka in revenue prompted the last caretaker-government led by Fakhruddin Ahmed to cut the sop through an ordinance.
Lawmakers of the present eighth parliament have demanded reneging the ordinance and permit import of duty-free cars despite opposition by rights and civic groups.
Last month parliament Speaker Abdul Hamid echoed the MPs demand and asked the government to allow the zero-tax import -- but only after capping the engine capacity and price of the car.
The speaker has argued that slapping of caps would stop drainage of precious revenue.
The revenue board prefers duty-free import of medium-range four wheelers --- not luxury ones --- for the country's 300 plus lawmakers in an effort to save billions of taka in drained-out taxes, officials said Tuesday.
Officials said the government could lose revenues up to Tk 6.00 billion this year if the authorities allow the members of parliament to import luxury sedans or Sport Utility Vehicles (SUVs) without paying customs duties and other taxes.
"We would rather prefer the government to permit duty-free import of medium range four wheelers for the lawmakers so that they can visit their rural constituencies with the cars," said a senior National Board of Revenue (NBR) official.
"We will only lose an average Tk500,000 -Tk1.0 million in revenue if a lawmaker is allowed to import duty-free medium range four-wheeler," he said.
The board has not made the suggestion to the government yet, but officials said the import of zero-tax luxury cars would seriously undermine the NBR's efforts to raise revenues in a difficult year when the country is facing full-brunt of the global economic recession.
A luxury car such as Mercedes Benz S Class, Toyota Lexus SUV, and the much talked about Hummer is entailed with 509 per cent customs and supplementary duties under the present tax laws.
"So if we allow someone to import a high luxury car such as Hummer, it may lead to revenue loss of nearly Tk30 million," said the official.
NBR officials aired their views amid fresh moves by the parliament secretariat to allow duty-free import of cars for the country's 345 lawmakers including 45 women legislators.
Successive governments since the late 1980s has allowed duty-free import of luxury cars, resulting in a serious abuse of the facility as lawmakers pocketed the duties by selling their import permits to the tycoons.
The abuse and the loss of some billions of taka in revenue prompted the last caretaker-government led by Fakhruddin Ahmed to cut the sop through an ordinance.
Lawmakers of the present eighth parliament have demanded reneging the ordinance and permit import of duty-free cars despite opposition by rights and civic groups.
Last month parliament Speaker Abdul Hamid echoed the MPs demand and asked the government to allow the zero-tax import -- but only after capping the engine capacity and price of the car.
The speaker has argued that slapping of caps would stop drainage of precious revenue.