Local motorbikes, cellphones set to be cheaper

The prices of locally-assembled motorcycles and cellphones might be cheaper in the next fiscal year (FY).

Finance Minister AMA Muhith on Thursday proposed a cut in import duty on 44 raw materials required for the assembling products.

The duty on mould release preparation, adhesive, electric discharging machine fluid and phenolic resin has been proposed at 5.0 per cent in FY (2018-19).

It is currently 10, 25, 15 and 10 per cent respectively.

This will help minimise the prices of locally-assembled motorbikes further, said Matiur Rahman, president of Bangladesh Motorcycle Assemblers and Manufacturers Association.

Motorbike sales soared nearly 50 per cent to 0.36 million (3.6 lakh) units in FY 2018 because of a cut in duty on such products gradually for the past few years, he added.

Further import duty cut will help raise the sale of the locally-assembled motorbikes also in FY 2019, he said.

The budget proposed a cut in import duty on 40 products, including cellphone making or assembling.

It proposed only 1.0 per cent duty on such products against the existing rates ranging from 5.0 to 25 per cent.

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