Barvida seeks government assistance

Bangladesh Reconditioned Vehicles Importers and Dealers Association-Barvida has said that the government can earn over Tk 1,000 crore in revenue if proper assistance is provided to traders in the sector during the crisis of Corona epidemic.

In this case, Barvida has requested the government to provide some necessary assistance to association members. Abdul Haque, President of the Association, presented his written statement at the press conference held at the Barvida office on Sunday.

The association said that if rent of 8,000 vehicles imported to Mongla and Chittagong ports is waived in April and May and loans of Tk 500 crore are given, the government can earn more than Tk 1,000 crore in revenue in the shortest possible time.

The President of Barvida said that the association members are not benefitted by incentive packages provided by the government. The organization requested for a loan assistance package of Tk 500 crore specifically for the sector.

The organization said that in some cases, the tax on reconditioned vehicles has doubled compared to new vehicles due to differences in tariff of reconditioned and new vehicles. As a result, imports continued to decline.

According to information provided by Barvida, more than 4,000 cars are currently on display in about 200 showrooms of Barvida members in Dhaka and Chittagong. In addition, about 8,000 imported vehicles of Barvida members are kept in the yard at Mongla and Chittagong ports.

Because of Corona, business activities are completely closed but traders have to bear showroom / office rent and pay salaries and allowances to employees. As a result, traders are incurring a loss of around Tk 300 crore.