Welcome to Business Outlook
Related Articles
The reconditioned car importers sought 45 per cent depreciation in duty for import of reconditioned cars and withdrawal of supplementary duty on import of widely used microbuses.
They, however, welcomed the proposed national budget for fiscal year 2021-22 for restructuring and reducing the tariff on import of microbus and hybrid cars.
The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) made the observations at a press conference on Wednesday in the city.
BARVIDA secretary general Mohammad Shahidul Islam presented association’s demands and observations at the press briefing while its president Abdul Haque delivered the welcome speech.
The BARVIDA president called for reconsideration of the association’s budget proposals, including 45 per cent depreciation facility on import of reconditioned cars and year-wise depreciation facility.
The BARVIDA proposed withdrawing the supplementary duty on import of widely-used 10-15 seated microbus (HS Code 87.02).
BARVIDA leaders said that in some cases, the prices of reconditioned cars is going to be eventually higher than the new cars because of existing extreme discrimination in customs valuation of two types of cars.
As a result, sales are declining and import is also going down and the businessmen in this sector have been facing a severe financial crisis, they said.
Some 12,502 reconditioned vehicles were imported in the 2018-19 financial year, down from 23,075 in fiscal year 2017-18 while 20,149 vehicles were imported in 2016-17, according to BARVIDA.
The downward trend in import of reconditioned vehicles also continued in fiscal year 2019-20.
The government’s revenue collection also declined significantly with the decline of the import of reconditioned vehicles.
The leaders of the apex body of car importers hailed the budget for proposing assistance which will revive the business, bring dynamism, protect local industries and economy and stimulate the rural economy of the country.
BARVIDA also welcomed the proposals on restructuring and reducing the tariff on import of microbus, hybrid cars and jeep (from 1801CC up to 2500CC).
The association expressed its satisfaction as the government considered its proposals and recognised microbuses as public transport, aiming to discourage use of unsafe transport like Nosimon and Leguna.
BARVIDA termed the FY ’22 budget business-friendly, stating that the proposed annual expenditure was ‘very positive in strengthening the necessary measures for ensuring access to health safety services and vaccination for the people and facing challenges of the Covid-19 pandemic.
(FE)
