Dhaka, Apr 24 (V7N): The Cabinet has approved a proposal to abolish the long-standing tax-free vehicle import facility for Members of Parliament, as part of broader efforts to ensure fiscal discipline and reduce state expenditure.

The decision was taken at a Cabinet meeting held on Thursday evening at the Parliament Complex, chaired by Prime Minister Tarique Rahman. The meeting approved both in-principle and final amendments to the “Members of Parliament (Remuneration and Allowances) (Amendment) Order 2026”.

Following Cabinet approval, the proposal will now be placed before Parliament as a bill. If passed, it will be published in the official gazette, formally ending MPs’ duty-free car import privileges.

According to a press release from the Cabinet Division, the decision was made considering the current economic realities of the country. Officials said the move is aimed at reducing public expenditure and ensuring better alignment of state benefits with financial sustainability and fairness.

Previously, under the “Members of Parliament (Remuneration and Allowances) Order, 1973,” MPs were entitled to import vehicles without paying customs duties. The new amendment will revoke this provision.

The government said the policy shift reflects the need for expenditure control and improved revenue management amid economic pressure.

In the same Cabinet meeting, five major proposals were approved. These included bringing the Purbachal New Town project under the jurisdiction of Dhaka North City Corporation, Dhaka Metropolitan Police, and Dhaka Water Supply and Sewerage Authority, along with integrating parts of the project into Dhaka district for administrative efficiency.

The Cabinet also approved changing the date of National Tea Day to May 21 to align with international observance, replacing the earlier date of June 4.

Additionally, two legal amendments were approved removing the maximum age limit of 65 years for the appointment of the chairman and commissioners of the Bangladesh Securities and Exchange Commission, as well as for the Insurance Development and Regulatory Authority.

Officials said these changes are intended to allow the appointment of more experienced professionals in key regulatory positions.

Overall, the Cabinet decisions are being viewed as part of wider administrative reform, fiscal discipline, and policy restructuring efforts, with the withdrawal of tax-free vehicle benefits for MPs considered a significant step toward expenditure control and equity in public resource allocation.

END/AJ/SMA/