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Reconditioned vehicle import from July to December of the ongoing fiscal year increased by 54.8 per cent compared with that in the same period of the previous fiscal year.
In July-December of FY22, a total of 8,768 reconditioned vehicles were imported from different countries like Japan, China, South Korea, Germany, the United States and the United Kingdom through Chattogram and Mongla ports.
Of the total imports, 70 per cent was the hybrid fuel run vehicles.
In the six months of FY21, a total of 5,662 reconditioned vehicles were imported.
Revenue earnings by the National Board of Revenue on reconditioned vehicle imports from July to December of the current fiscal year stood at Tk 1,280 crore, according to revenue board data.
According to the data, the government earned Tk 2,783 crore in revenue from the import of 14,170 reconditioned vehicles in the fiscal year 2020-2021.
The lowest revenue, Tk 309 crore, was earned on import of 1,939 reconditioned vehicles in the fiscal year 2019-2020 as the Covid-19 surged across the globe.
The highest revenue, Tk 3,076 crore, was earned on import of reconditioned vehicles in the fiscal year 2011-2012.
Businesses said that the government revenue from import of reconditioned vehicles might reach a record Tk 4,000 crore at the end of the ongoing fiscal year.
Former Bangladesh Reconditioned Vehicles Importers and Dealers Association president Abdul Haque told New Age that the government revenue from the sector reflected a vital sign as the reconditioned vehicle import increased due to an increasing demand for the used vehicles on the local market.
The government has offered import duty benefits on import of hybrid vehicles, including micro buses, which also inspired the importers, he said.
Abdul Haque, also the managing director of Haq’s Bay Automobiles Ltd, said, ‘We import reconditioned vehicles targeting mostly the middle-income consumers and such consumers buy reconditioned vehicles as resale value is high in our country.’
The demand for the hybrid cars has gradually increased among the consumers for offering lower fuel consumption, lower maintenance costs and a greener way to commute compared with their peers, he said.
He also suggested that the government should lower the duties on reconditioned vehicle imports in the upcoming budget and said, ‘If the government cuts the duty, both import and revenue will increase in the coming days.’
Reconditioned vehicle traders have to pay 31 per cent to 826 per cent in import duty depending on car engine capacity, apart from 15 per cent value-added tax, 5 per cent advance tax, 5 per cent regulatory duty and 4 per cent advance trade VAT on tariff value.
According to the BRVIDA, around 850 reconditioned vehicle importers invested around Tk 30,000 crore in the sector.
(NA)
