29 brand-new Toyota Land Cruiser vehicles, imported under duty-free benefits by former MPs of the fallen government, are now stuck at Chattogram port. Due to extremely high and allegedly irrational price valuations by customs officials, these luxury cars remain unsold after a failed auction. As time passes, the risk of parts being stolen or the vehicles becoming scrap increases. The National Board of Revenue (NBR) is now being consulted for a solution.
Land Cruisers Become a Burden for the Government
Due to irrationally high price valuations, 29 brand-new Toyota Land Cruisers have become a serious issue for the government. These high-end vehicles, imported under the duty-free facility for former MPs, are now collecting dust inside the sheds of Chattogram port for over a year.
Customs officials allegedly set the car values much higher than market price, causing confusion and pushing potential buyers away. After a failed auction, customs authorities are now hesitant to organize a second round, fearing further embarrassment.
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Overpricing by Customs Creates Chaos
Each Land Cruiser originally cost around $57,400 USD, which was about 57.4 lakh BDT when the cars were ordered. However, Chattogram Customs valued each at 1.04 crore BDT and added a massive 826% duty, raising the total assessed price to 9.67 crore BDT per car.
This means customs determined the tax alone to be 8.62 crore BDT for a car worth just a little over 1 crore!
Several vehicle traders have criticized this move:
“তারা মূলত অযৌক্তিক মূল্য নির্ধারণ করে এসব গাড়ি শেষ পর্যন্ত কেজি দরে বিক্রির আয়োজন করছে।”
“They are setting irrational prices just to eventually sell these cars as scrap,” said a car trader.
Failed Auction and Fear of Scrap
In February, 24 of these vehicles were put up for auction. But because of the high asking price, no buyers came forward. The highest offers ranged between 1 lakh and 3.1 crore BDT, far below customs’ set price.
To win in the auction, a buyer needed to pay at least 5.8 crore BDT, which would become 7.25 crore BDT after taxes. Since no one offered anywhere near that, the first auction failed, and rules prevent a second auction unless slightly higher bids are accepted — which could mean selling at a massive revenue loss.
Risk of Theft and Damage
Many fear these valuable vehicles might be damaged or looted if left in the port much longer. Past experiences show that important machinery and parts are often stolen from such stored items.
“অতিবেশি রাজস্ব আদায় করতে গিয়ে যেন মূলটাই হারিয়ে না যায় সেদিকে খেলায় রাখা দরকার।”
“In trying to collect too much tax, we might lose everything in the end,” said Abdul Haque, President of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA).
One MP Cleared His Car—Others in Jail or Hiding
These 29 cars were imported under the duty-free facility by 30 MPs of the fallen Awami League government elected in the controversial “Ami-ar Dummy” election. However, before they could clear the cars, the government fell after a massive student-led uprising.
On August 5, 2024, Sheikh Hasina fled to India, and Parliament was dissolved the next day. NBR then cancelled all duty-free import privileges. While letters were sent twice requesting customs clearance by paying duty, only one former MP complied — A.K. Azad, MD of Ha-Meem Group.
The others are either in jail or hiding, and their cars remain abandoned at the port.
Japanese Cars Ordered Before Fall of Govt
Toyota had begun manufacturing these vehicles in Japan after receiving the purchase orders, which were backed by letters of credit (LCs).
In total, 51 former MPs opened LCs to import vehicles. Out of them, six MPs, including Sayed Sayedul Haque Suman, Shakib Al Hasan, and actor Ferdous Ahmed, managed to clear their vehicles before Parliament was dissolved, receiving 51 crore BDT in tax exemptions.
Two others — Mujibur Rahman and Jannat Ara Henry — tried to pay advance income taxes to release their cars in August, but customs halted the process due to the political changes.
Customs’ Official Response
Chattogram Customs’ Assistant Commissioner Sakib Hossain defended their actions:
“নিয়ম মেনেই প্রতিটি গাড়ির দাম ও শুল্ক-কর নির্ধারণ করা হয়েছে।”
“Each car’s value and duty have been assessed according to rules,” he said.
Since these are 2024 model cars, he said, there’s no room to reduce the price. Only one MP has cleared a car at this price, and these types of vehicles are not commonly imported commercially because of the high duties.
He added that NBR has been consulted for a final decision, and Chattogram Port has offered to buy five cars. The NBR Chairman has also recommended selling the vehicles instead of holding another auction.
“গাড়ি বিনষ্ট হওয়ার কোন আশঙ্কা নেই।”
“There is no risk of the vehicles being damaged,” he assured.
Source: The Daily Inqilab
