Around 44% tax on MPs’ vehicles likely

The government has proposed revoking the duty-free vehicle import facilities offered to the members of parliaments (MPs).

In the summary of the national budget for FY2024-25, which was presented in parliament on Thursday, it was mentioned that the government plans to impose a 25 per cent customs duty and a 15 per cent VAT on lawmakers' imports of motor vehicles in the next fiscal year.

Currently, general consumers pay 25 per cent customs duty, 15 per cent VAT, 3 per cent regulatory duty, 5 per cent advance tax, 5 per cent advance income tax and an additional supplementary duty of mostly 400-500 per cent on vehicle imports.

Earlier, customs officials said that there is possibility of imposing 25 per cent customs duty and 15 per cent VAT on lawmakers' vehicle imports. If these are imposed after amendments to the existing notification and order, the total tax incident will end up being around 44 per cent on vehicles imported by MPs.

“Presently exemption of all types Customs duties and taxes exists on import of one Car/Jeep/Microbus by the honourable Members of the Parliament. We are encouraging everyone to pay tax and to come out of the culture regarding tax exemption,” said Finance Minister Abul Hassan Mahmood Ali in the budget speech on Thursday.

“A noble example will be set if the public representatives amend this privilege and lead everyone to come out of tax exemption culture. Amendment in the relevant order can be made to achieve this goal.

“I am requesting the concerned honourable minister to make necessary amendment in “The Members of Parliament (Remuneration & Allowances) order, 1973” accordingly,” said the minister.