Cars of 24 former MPs up for auction

Only one person has cleared a vehicle, paying the duty and tax since the cancellation of the duty-free car import facilities for the MPs. The former MPs have not cleared the imported cars even after being reminded twice through letters. The Chittagong Custom House is auctioning 24 of these imported cars next week.

The former MPs have paid Tk 9.5-10 million each for these. As such, the former MPs have spent some Tk 230 million in total. They are not getting back the money. The money from the auction will be deposited in the government treasury.

The customs has set the reserved price (including duty tax) for those cars at Tk 96.7 million. The highest bidder can purchase the car by paying at least 60 per cent of the price or more. As such, the buyers will have to pay at least Tk 58 million to purchase these cars. Including 25 per cent tax, the minimum price stands at Tk 72.5 million.

Speaking to Prothom Alo, Chittagong Custom House deputy commissioner Saidul Islam told Prothom Alo that during the tenure of the ex-MPs, the government would get Tk 480,000 to Tk 500,000 in advance income tax on each car cleared under the duty free facility. Now, the government will get Tk 70 million from each car during the first auction. In all, the government is expecting revenue of Tk 1.75 billion from selling these cars.

Saidul Islam said the 24 cars owned by the former lawmakers will be up for online auction from next Sunday. The interested bidders will be able to check the cars from 2 February to 4 February. The entire process of auction will be ended by 16 February. Anyone can take part in the auction online from any place in the country.

Except for a few, most of these were latest model cars. Japan-based car manufacturer Toyota started making these cars right after getting the purchase order. The cars were prepared in three to four months.

Some of those who ordered these cars are hiding while others are in prison at the moment. Prothom Alo tried to contact some of them. A former lawmaker, who is into hiding at the moment, said on condition of anonymity, “It’s an accident. Millions of taka went in vain. It’s not possible to release the cars with 8 times duty tax. Such a luxury is not possible at the moment.”

Sources in the customs say as many as 51 former lawmakers opened LCs to import cars under the duty free facilities. Six of them had already released their cars from the customs under the facility. They are Syed Sayedul Haque, cricketer Shakib Al Hasan, Foyzur Rahman, Abul Kalam, film actor Ferdaus Ahmed and Golam Faruque. Together they enjoyed a duty exemption of Tk 510 million.

The NBR revoked the duty free facility after the parliament was dissolved on 6 August. After that, former lawmaker from the Faridpur-3 constituency A K Azad cleared a car by paying taxes and duties. He paid a duty tax of Tk 85.4 million for a car worth Tk 10.3 million.

Speaking to Prothom Alo, Ha-Meem Group managing director A K Azad told Prothom Alo, “I imported the car under the duty free facility on the basis of government NOC. Later, I cleared the car by paying duties and taxes as the NBR denied providing the duty free facility.”

All vehicles that went under the hammer were Toyota Land Cruiser with 3,346cc (cylinder capacity). These vehicles are imported less in the private sector because their duties and taxes are 8.25 times higher than the import prices.

According to the Customs list, former lawmaker Muhammed Sadique Sunamganj-4 imported the most expensive Land Cruiser with an import price of Tk 10.6 million, as well as Tk 87.8 million in duties and taxes.

Former lawmaker from Mymensingh-7 ABM Anisuzzaman brought a cheapest Toyota car with an import price of USD 57,000 or Tk 6.8 million, as well as Tk 56.3 million in duties and taxes. Cherry Enterprise was involved in the release of the car. Its managing partner Moshiur Rahman told Prothom Alo it was a used vehicle and it was not released following the dissolution of parliament.

Two Land Cruisers of former lawmakers from Awami League – Mojibur Rahman and Jannat Arra Henry – reached the port at the end of July. The parliament was dissolved on 6 August after the ouster of the government, they moved to release the vehicle by paying Tk 979,000 as advance income tax, but the Chittagong Customs held back it. Those two vehicles are now up for sale at auction.

Layers of dust covered these vehicles that have been kept at a newly-built car shed in front of the port stadium.

Among others, state minister for information Mohammad Ali Arafat, Muhammad Saiful Islam, Sanjida Khanam, Muhammad Shahjahan Omar, Sourendra Nath Chakraborty, Anupam Shahjahan Joy, Sajjadul Hasan, Md Saddam Hossain (Pavel), Tarana Halim, Naser Shahriar Zahedi, Md Abul Kalam Azad, Abdul Motaleb, Shammi Ahmed, Mohammad Abdul Wahed, Runu Reza, Md Touhiduzzaman, Shah Sarwar Kabir, SAK Ekramuzzaman, SM Al Mamun, SM Kamal Hossain, Mujibur Rahman, Md. Asaduzzaman, Nadia Binte Amin and Akhtaruzzaman had their vehicle gone under the hammer.

Customs officials said at first vehicles owned by 29 lawmakers were listed for auction but five lawmakers were left off the list on the night of 23 January and details of the omitted individuals could not be learned immediately.

Lawmakers first enjoyed duty-free facilities during the Ershad government tenure. According to the sources at the NBR, a circular was issued on 24 May 1988 on this matter. The subsequent government of BNP and Awami upheld the facility and lawmakers took advantage of it to import vehicles. Currently, lawmakers can import a vehicle enjoying the duty exemption facility every five years.

According to the customs sources, lawmakers imported at least 576 vehicles during the three terms of the Awami League from 2009 to 2023 with an assessment value of Tk 4.28 billion, as well as over 35 billion in duty and tax exemptions.

According to the last circular issued in 2022 on duty-free facilities for lawmakers, the members of parliament can import diesel-run vehicles with engines of no more than 4,500cc. The circular banned the import of 13 luxury car brands including Cadillac, Rolls Royce, Ferrari, Rang Rover, Mercedes and BMW, but it excluded the Toyota brand.

Former lawmakers, however, picked the Toyota Land Cruiser with an engine of 3,336cc to make the most of it as duties and taxes on this vehicle are 826.60 per cent or about Tk 85-90 million. The NBR database shows no record of releasing any vehicle by paying Tk 85 million in duties and taxes in the private sector over the past 21 years. Lawmakers stumbled for the first time after the fall of the Awami League government in the face of a student-people mass uprising.

Centre for Policy Dialogue distinguished fellow Mustafizur Rahman told Prothom Alo now it has come to light how much the government lost in revenue due to duty-free facility after these vehicles went under the hammer. Vehicles imported under the duty-free facility for lawmakers are misused more than being used for people. That is why, cars should be left out from duty-free facilities as luxury goods, he added.