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Cut in depreciation facility

Prices of used cars go up

FE Report | June 13, 2018 00:00:00


A cut in the depreciation facility in the proposed budget has pushed up the prices of reconditioned cars by Tk 0.1 million to Tk 0.45 million.

Bangladesh Reconditioned Vehicles Importers and Dealers' Association (BARVIDA) has said this at a post-budget press conference at the National Press Club in the capital.

The reduction in the depreciation facility has been made in the Finance Bill-2018.

The fiscal measure came into effect from June 7.

Year-wise depreciation facility has been cut by 5.0 percentage point for import of reconditioned cars.

This applies to all types of cars, including hybrid cars regardless of their engine capacity.

Speaking at the event, BARVIDA President Md Habib Ullah Dawn said the government has encouraged import of substandard new cars with this measure.

"Those new cars are usually imported from third country. They also threaten the environment," he added.

Mr Dawn, however, welcomed the move to encourage import of environment-friendly hybrid cars.

Md Abdul Hamid Sharif, former president of BARVIDA, said prices of reconditioned cars would go up beyond 5.0 per cent due to an ad-valorem duty structure.

An upward adjustment of Advance Trade VAT (ATV) by 1.0 percentage point for the next fiscal year (FY) would also cause an escalation in the prices, he stated.

The BARVIDA leader demanded reintroduction of the depreciation facility of the current FY.

The BARVIDA has sought a 10 per cent cut in value as dealer/trade discount on actual prices of new cars quoted in the yellow book.

The customs authorities calculate duty of a used car against its price after its year-wise depreciation.

The BARVIDA leaders said the middle-income groups have to carry an additional tax burden due to a cut in the depreciation facility.

Mr Dawn said the fiscal measure has facilitated the well-off people who can import new cars.

Existing duty structure is faulty as tax on new cars is less than that of the reconditioned cars, he added.

"This happens because customs authorities accept prices of new cars declared by importers after some adjustment," he mentioned.

According to BARVIDA data, the import of reconditioned car increased 34 per cent to 17,727 units year on year during the July-February period of the current FY.

The BARVIDA leaders said the overall import of used vehicles would fall for the discouraging tax measure.

doulot_akter@yahoo.com


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COMPANY YCP HIGH LOW CLOSE %CHG
UNITEDINS 21.6 23.7 23.1 23.7 9.7222%
ADVENT 34.2 36.7 34.5 35.9 4.9708%
PRIMETEX 34.4 36.5 34.9 35.9 4.3605%
PENINSULA 26.2 27.7 26.1 27.1 3.4351%
BEXIMCO 24.1 25.2 24.1 24.9 3.3195%
YPL 12.2 12.7 12.2 12.6 3.2787%
UNITEDFIN 16.6 17.3 16.9 17.1 3.012%
LEGACYFOOT 203.7 221.2 206.1 208.6 2.4055%
ANLIMAYARN 33.6 34.8 32.8 34.4 2.381%
BSC 35.8 36.8 35.0 36.5 1.9553%
COMPANY YCP HIGH LOW CLOSE %CHG
ANLIMAYARN 34.8 34.8 32.8 32.8 6.0976%
ADVENT 36.2 36.7 34.5 34.5 4.9275%
BEXIMCO 25.1 25.2 24.1 24.1 4.1494%
YPL 12.7 12.7 12.2 12.2 4.0984%
EASTLAND 19.3 19.3 18.3 18.6 3.7634%
POPULARLIF 110.1 110.1 106.2 106.7 3.1865%
PRIMETEX 36.0 36.5 34.9 34.9 3.1519%
SEMLLECMF 6.8 6.8 6.6 6.6 3.0303%
PHOENIXFIN 34.2 34.2 33.1 33.2 3.012%
MONNOCERA 349.9 358.5 340.1 340.1 2.8815%
COMPANY YCP HIGH LOW CLOSE %CHG
RAHIMTEXT 469.0 495.0 399.0 404.0 -13.8593%
IBP 44.3 47.5 38.2 38.8 -12.4153%
DOREENPWR 98.3 95.0 85.8 86.2 -12.3093%
IFADAUTOS 124.3 118.0 109.0 110.2 -11.3435%
IMAMBUTTON 24.0 25.9 21.6 21.7 -9.5833%
SAVAREFR 111.9 110.9 100.8 101.3 -9.4727%
ISNLTD 28.6 29.0 25.8 25.9 -9.4406%
SHYAMPSUG 28.5 28.5 25.7 25.9 -9.1228%
BDAUTOCA 349.1 338.9 300.0 317.6 -9.0232%
SPCERAMICS 14.9 15.5 13.6 13.7 -8.0537%
COMPANY YCP HIGH LOW CLOSE %CHG
IMAMBUTTON 21.6 25.9 21.6 25.9 -16.6023%
RAHIMTEXT 415.0 495.0 399.0 490.0 -15.3061%
IBP 39.1 47.5 38.2 45.1 -13.3038%
ISNLTD 25.8 29.0 25.8 28.9 -10.7266%
DOREENPWR 86.1 95.0 85.8 95.0 -9.3684%
KPPL 22.4 25.2 22.4 24.5 -8.5714%
KPCL 118.0 129.0 117.6 129.0 -8.5271%
SPCERAMICS 13.7 15.5 13.6 14.9 -8.0537%
MEGHNACEM 106.2 116.0 106.0 115.4 -7.9723%
JUTESPINN 89.5 97.2 89.5 97.2 -7.9218%