Fiscal measures will 'help escalate prices of reconditioned cars'
FE Report | Thursday, 12 June 2008
Bangladesh Reconditioned Vehicles Importers and Dealers' Association (BARVIDA) Wednesday demanded introduction of specific tariff on the basis of engine capacity for import of cars instead of existing variable duty structure.
It said the fiscal measures, proposed in the budget, will only help escalate prices of reconditioned vehicles making it dearer to middle income group of people.
Speaking at a press conference at a city hotel Wednesday, BARVIDA president Abdul Huq said: "The government imposed 20 per cent supplementary duty (SD) on import of microbus, which was zero per cent in fiscal 2006-07."
In the last fiscal, the government imposed 60 per cent SD on vehicles from 1501 cc to 1800 cc.
Following the big jump from zero SD to 60 per cent import of microbus came to a halt last year.
In the budget for fiscal 2008-09, the government proposed imposition of 60 per cent SD on cars having engine capacity up to 2350 cc while the ones above 2350 cc will have to pay 100 per cent duty.
BARVIDA president urged the government to allow import of cars up to 3000 cc under 60 per cent duty slab.
"Importers of small size jeep like RAV-4 and Kluger with 2400 cc engine will be discouraged while new cars such as X-Tral 2000 cc car will be facilitated," Mr Huq said.
The government proposed in the budget that the importers would not be allowed to bring in cars that are below 365 days old. Currently it is 120 days.
It said the fiscal measures, proposed in the budget, will only help escalate prices of reconditioned vehicles making it dearer to middle income group of people.
Speaking at a press conference at a city hotel Wednesday, BARVIDA president Abdul Huq said: "The government imposed 20 per cent supplementary duty (SD) on import of microbus, which was zero per cent in fiscal 2006-07."
In the last fiscal, the government imposed 60 per cent SD on vehicles from 1501 cc to 1800 cc.
Following the big jump from zero SD to 60 per cent import of microbus came to a halt last year.
In the budget for fiscal 2008-09, the government proposed imposition of 60 per cent SD on cars having engine capacity up to 2350 cc while the ones above 2350 cc will have to pay 100 per cent duty.
BARVIDA president urged the government to allow import of cars up to 3000 cc under 60 per cent duty slab.
"Importers of small size jeep like RAV-4 and Kluger with 2400 cc engine will be discouraged while new cars such as X-Tral 2000 cc car will be facilitated," Mr Huq said.
The government proposed in the budget that the importers would not be allowed to bring in cars that are below 365 days old. Currently it is 120 days.