Importers demand tax benefit on hybrid car

Reconditioned car importers have demanded tax benefit on import of hybrid car, reduced tax on microbus, and import of quality vehicles.
They submitted these pre-budget proposals at a meeting with the National Board of Revenue (NBR) Wednesday. NBR chairman Ghulam Hussain chaired the meeting.
Bangladesh Reconditioned Vehicle Importers and Dealers Association (BARVIDA) president Habibullah Dawn said revenue collection from reconditioned car import declined to Tk 9.0 billion this year from Tk 30 billion earlier due to a downward trend in import of quality cars.
"There is no import of 2,000 CC cars during the last six years. With the ongoing trend, the government is being deprived of its due revenue."
Mr Dawn also proposed to revise the existing depreciation facility for cars, aged up to one and a half year, which are not getting the facility.
Addressing the meeting, the revenue board chairman said the government has set Tk 1.49 trillion target for the NBR for the fiscal year (FY) 2014-15, projecting a 23 per cent growth over the revised budget for the current FY.
"We have to devise ways to increase tax revenue to meet the higher target."
He also urged the businesses to submit proposals on revenue aspects, rather than seeking tax exemption only.
The NBR chairman said tax revenue collection can be increased by reducing tax rates too, if it is done with proper analysis.  
He said the consultative committee meeting with all the businesses will be held on May 8.
In the meeting Uttara Group of Companies managing director Matiur Rahman proposed to facilitate local manufacturing sector by offering tax benefit to CKD (complete knock down) motors of pick-up van.
Currently tax on CKD is 37 per cent on import stage.
He said around 30 to 40 components of truck can be procured from local market following the government's due support.
Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) director Abdul Huq recommended enhancing localized service by exploring the potentials through coordinated efforts by the Ministry of Industries, the Board of Investment (BoI) and other relevant organisations.
"Bangladesh is lagging behind in industrialization, as many of the potentials still remain untapped."
The country will have to join the global supply chain by developing its local industries, he added.
NBR member (income tax policy) Aminul Karim suggested research-oriented proposals for the budget to take effective measures.
In the meeting, Bangladesh cargo vessel association leaders sought tax benefit on import of raw materials and fly ash through waterways.
Inland container depot association sought VAT waiver on air conditioner of launch, and cut in presumptive tax.
Road transport association secretary general Enayaetullah sought tax benefit for the sector, as the government declared it an industry.
He also proposed to incorporate reduced rate of import tax on capital machinery, and to charge VAT on number of passengers of buses.