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BARVIDA seeks 45pc depreciation facility

FE Report | April 01, 2019 00:00:00

The importers of reconditioned vehicles have demanded either 45-per cent depreciation facility for five years or reintroduction of a consolidated tax benefit system for them.

They said the introduction of the proposed measures would minimise the discriminatory import duty rates between used and new vehicles.

Consolidated method means fixation of duties through deducting dealers' commission and 45-per cent depreciation from yellow book prices of new cars, they added.

The members of Bangladesh Reconditioned Vehicle Importers and Dealers Association (BARVIDA) made the proposals at a pre-budget parley with the National Board of Revenue (NBR) on Sunday.

NBR chairman Md Mosharraf Hossain Bhuiyan presided over the meeting on the revenue board's premises.

At the meeting, BARVIDA president Md Habibullah Dawn said the importers of used cars are paying higher duty than that for new ones because of existing customs assessment process.

The customs authorities conduct assessment of used cars on the basis of yellow book prices but they conduct the same on declared invoice prices of new vehicles.

Mr Dawn said the government has cut the depreciation facility by 10 percentage points to 35 per cent in the past two years.

It should be replaced to reduce discrimination with the duty taxes for imported new cars, he argued.

An importer of a 2019 model 1500cc car has to pay about Tk 0.93 million in tax while it is above Tk 2.0 million for a same-capacity used car, BARVIDA leaders said.

Responding to their demands, Mr Bhuiyan said he would try to address the issue in the budget exercise for the upcoming fiscal year.

The BARVIDA also proposed a cut in the supplementary duty (SD) rates for 12-15 seated microbuses, waiver in SD for environment-friendly electric car import.

It also sought duty benefit for hybrid vehicles up to 2500cc.

Mr Dawn said only 20 to 25 electric cars are currently being imported in the country which would increase if the government offers duty benefit.

The NBR chief said the duty benefit for hybrid cars would remain unchanged.

The NBR would encourage the local car manufacturing industries to reduce dependence on imports, he added.

Earlier in the day, the NBR held another pre-budget consultation with the Bangladesh Ceramic Manufacturers and Exporters Association.

Md Sirajul Islam Molla, president of the association, proposed checking under-invoicing on imports of ceramic ware to create a level-playing field.

He said the local industry is capable of meeting the domestic demand for tiles, tableware and sanitary ware.

"We can meet 92 per cent of the local demand for tableware, 76 per cent for tiles and 88 per cent for sanitary ware," he said.

Mr Molla said 15 per cent SD during the production of tiles should be waived as it is no more a luxury item.

The leaders of the association also proposed imposition of higher duties on tile imports to save the local industry.

About their demand, Mr Bhuiyan said the government would try to reduce the duty difference between imported and locally produced tiles.

The association also proposed cuts in customs duty, SD and regulatory duty on basic raw materials, decoration, printing and other materials of ceramic industry.

It also sought a 100-per cent rebate on the paid VAT (Value Added Tax) of gas bills.


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