Ministry asks NBR to readjust Sedan car's import duty
Wednesday, 19 May 2010
FE Report
Ministry of Industries has recently proposed the NBR to readjust the import duty of 1500 cc Sedan car in a bid to help flourish local assembling by 2012 that will create more employment and accelerate economic growth.
State-owned Pragati Industries limited, a subsidiary of Bangladesh Steel and Engineering Corporation (BSEC) under the ministry, has been conducting a feasibility study with the leading car manufacturing company Mitsubishi to begin sedan car assembling here.
"We are hopeful that the country will be able to start assembling 1500 cc Sedan car by 2012, if the government provides necessary support. Once the industry is established, it will create scopes for more employment and accelerate national economic growth," said Zahiruddin Chowdhury, managing director of Pragati.
A 1500 cc finished Sedan car is subject to pay 124.65 per cent duty, while import of its parts requires 101.72 per cent tax. Tax rates should be lowered for importing parts of sedan car, so that local industries can flourish, he also said.
"Duty evasion and under invoicing on import of new and reconditioned car are rampant. The government should introduce tariff value for import of car that would minimise scopes of false declaration."
Pragati has already assembled Pajero car (V-31) and jeep, which are purchased by public sector.
"The government has to provide support to flourish the local car manufacturing industry by reducing tax on parts import. We have proposed the industries ministry to forward the suggestion to the authorities concerned," he added.
Responding to the demand, the ministry recently sent the proposal to the National Board of Revenue (NBR) to review the existing high import tax of sedan car parts.
It has proposed to raise import tax of 1500 cc finished sedan car and reduce the duty of sedan car parts. It has also proposed to raise total tax incidence (TTI) of sedan car to 193.16 per cent, and reduce duty of parts to 51.60 per cent to patronise local car assembling industry.
Differences of tax between 1500 cc sedan car and its parts is 22 per cent. But, local automobile industry's TTI will be increased by 45 per cent due to domestic processing cost, the industry ministry's proposal added.
Ministry of Industries has recently proposed the NBR to readjust the import duty of 1500 cc Sedan car in a bid to help flourish local assembling by 2012 that will create more employment and accelerate economic growth.
State-owned Pragati Industries limited, a subsidiary of Bangladesh Steel and Engineering Corporation (BSEC) under the ministry, has been conducting a feasibility study with the leading car manufacturing company Mitsubishi to begin sedan car assembling here.
"We are hopeful that the country will be able to start assembling 1500 cc Sedan car by 2012, if the government provides necessary support. Once the industry is established, it will create scopes for more employment and accelerate national economic growth," said Zahiruddin Chowdhury, managing director of Pragati.
A 1500 cc finished Sedan car is subject to pay 124.65 per cent duty, while import of its parts requires 101.72 per cent tax. Tax rates should be lowered for importing parts of sedan car, so that local industries can flourish, he also said.
"Duty evasion and under invoicing on import of new and reconditioned car are rampant. The government should introduce tariff value for import of car that would minimise scopes of false declaration."
Pragati has already assembled Pajero car (V-31) and jeep, which are purchased by public sector.
"The government has to provide support to flourish the local car manufacturing industry by reducing tax on parts import. We have proposed the industries ministry to forward the suggestion to the authorities concerned," he added.
Responding to the demand, the ministry recently sent the proposal to the National Board of Revenue (NBR) to review the existing high import tax of sedan car parts.
It has proposed to raise import tax of 1500 cc finished sedan car and reduce the duty of sedan car parts. It has also proposed to raise total tax incidence (TTI) of sedan car to 193.16 per cent, and reduce duty of parts to 51.60 per cent to patronise local car assembling industry.
Differences of tax between 1500 cc sedan car and its parts is 22 per cent. But, local automobile industry's TTI will be increased by 45 per cent due to domestic processing cost, the industry ministry's proposal added.