Automobile association wants NBR support for manufacturing EVs

Bangladesh Automobiles Assemblers and Manufacturers Association (BAAMA) on Sunday urged the government and the National Board of Revenue (NBR) to provide ‘special incentives’ for progressive manufacturing of electric vehicles (EVs) in the country as the world moves toward sustainable energy sources reducing its dependency on fossil fuels.

In this regard, they urged the NBR to reform HS (harmonised system) code based on CC/KW of the locally manufactured passenger vehicles, and impose 5 per cent duty on its raw material import.

Former BAAMA president and Runner Group Chairman Hafizur Rahman put forward the proposals to NBR Chairman Abu Hena Md Rahmatul Muneem, during a pre-budget discussion at the NBR Conference Room in Dhaka.

BAAMA Senior Vice-President and IFAD Group Deputy Managing Director Taskeen Ahmed proposed VAT and duty exemption from existing 15 per cent on import level for those who deliver chassis and cabin as progressive manufacturers.

He, however, suggested slapping 5 per cent VAT on sales level.

At the meeting, Aviation Operators Association of Bangladesh (AOAB) Secretary General Mofizur Rahman called upon the government to provide them proper policy support for the development of the sector.

“We propose to exempt 15 per cent VAT imposed on aeronautical and non-aeronautical charges, and withdraw VAT imposed on development fee as well. We also request the NBR to reduce 15 per cent supplementary duty from the existing 25 per cent,” he said.

He requested the revenue board to fix 20 per cent corporate tax from the current 30 per cent for airlines and aviation operator companies.

The AOAB also proposed to withdraw all types of taxes and VAT on training costs in the upcoming national budget for FY2022-23.

Bangladesh Inland Waterways (passenger carriers) Association Vice-President Saidur Rahman Rintu requested the NBR to fix Tk 50 tax from existing Tk 100 for the launches whose registration elapsed over 10 years.

Bangladesh Motor Parts and Tyre Tube Merchants Association General Secretary Md Aslam proposed to fix 2 per cent VAT from existing 5 per cent on tyre sales at retail level.

Besides, Bangladesh Motorcycle Assemblers and Manufacturers Association, Bangladesh Bicycle Merchant Assembling and Importers Association, Bangladesh Automobile Workshop Malik Samity, and Accumulator Battery Manufacturer and Exporters Association of Bangladesh also presented their respective proposals in the pre-budget meeting.