FE Report
The Ministry of Finance (MoF) has asked the Ministry of Communications (MoC) to rationalise the road tax on vehicles taking into account the luxury cars like BMW, Lexus and Mercedes Benz, official sources said.
It has made the recommendation following its findings that the MoC has not maintained any rational policy in imposition of road tax on luxury cars compared to other general vehicles.
The MoC imposes road tax on the basis of number of seats in a vehicle.
"Under such a policy, road tax on a five-seat 20-year old cars and five-seat latest MBW or Mercedes Benz is the same," said the MoF study.
The MoF had in the past urged the MoC to address the issue without any result.
The alleged non-cooperation has been seen as major roadblocks for the MoF to increase the government non-NBR revenue, the target of which has been fixed nearly at Tk 20 billion for the new fiscal.
Almost one fourth or Tk 4.50 billion of the total non-NBR revenue has been projected to come from the taxes on vehicles.
Available statistics until 2006 showed that there were nearly 1.0 million registered motor vehicles. Of them, 14.63 per cent or 136,484 were cars.
There is no specific data about the luxury cars, the sources said adding such vehicles are not few in number.
Plea to rationalise road tax on vehicles
FE Team | Published: July 08, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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