Bangladesh Reconditioned Vehicles Importers & Dealers Association (BARVIDA) has demanded reducing duty on hybrid vehicles and withdrawal of supplementary duty on microbuses and electric vehicles used as public transport in the proposed budget for the fiscal year 2023-24.
The association also called for revising the duty-tax rates on cost-effective and environment-friendly hybrid vehicles.
BARVIDA president Md. Habib Ullah Dawn placed the demands at a press conference on the proposed budget for FY24 at a club in the capital on Tuesday.
“We have proposed to withdraw existing 20 per cent supplementary duty (SD) on 10 to 15-seat microbuses. Why should there be a 20 per cent SD on the car that meets the needs of the mass people?” he also added.
The association president thanked the Prime Minister and Finance Minister for the steps taken by the government in the proposed budget to achieve the desired growth of the country, control inflation, boost investment and protect local industries.
“The expectations of the reconditioned car importers have not been fulfilled as the import duty on hybrid cars and jeeps (from 1,801cc to 4,000cc) has not been reduced as per our proposal. So, we urge the government to reconsider our proposal,” he also said.
Habib Ullah further said that the reduction in duty on hybrid vehicles and withdrawal of supplementary duty on microbuses and electric vehicles will bring the vehicle prices within the affordability of the middle-class people. As a result, the revenue of the government will also increase manifold along with market expansion.
He mentioned that the budget for the fiscal year 2024 has proposed to levy environment surcharge on each car of any taxpayers having more than one car.
In this regard, he said BARVIDA mainly imports cars from Japan which are most technology advanced and environment-friendly. “Since most of these cars do not emit carbon, it is not logical at all to impose environment surcharge on these car users. We demand specific guidelines and clear explanation in this regard.”
“We have long been demanding that the National Board of Revenue (NBR) fix a long-term tax structure and duty-tax rates on imports of reconditioned vehicles. By doing this, we can meet the sector’s revenue collection target,” he added.
Regarding revision of CC slab and supplementary duty rates on fossil fuel vehicles, Habib Ullah said there is an opportunity to increase the import of these cars and boost the revenue of the government if the CC slab and supplementary duty are reduced. No initiative has been taken in this regard in the proposed budget for FY24.
As per BARVIDA’s proposals in the national budget for FY22, microbuses were recognised as public transport by discouraging unsafe traffic like Nasimon, and Laguna etc. “We thank the government for this. Due to the reduction in duty on various categories of microbuses in that fiscal year, import of these vehicles increased and the government collected huge revenue.”
BARVIDA Vice President Md. Aslam Serniabath, and its Secretary General Mohammed Shahidul Islam as well as former president Abdul Haque, among others, were also present at the programme.