NBR allows 15pc depreciation in used car import

The National Board of Revenue (NBR) has offered tax benefits for the reconditioned car importers by allowing them to enjoy 15 per cent deprecation in import of six months to one-year-old cars.
There was no deprecation facility for the one-year-old reconditioned cars in the budget for fiscal year (FY) 2013-14.
The customs wing has split the months to offer the facility. Used cars aged between zero and six months will get no depreciation on its prices.
However, the NBR has cut the depreciation facility for used cars aged between one and two years by 5.0 per cent.
The board has issued a Statutory Regulatory Order (SRO), dated March 9, 2014, in this regard.
The SRO, signed by NBR chairman Ghulam Hussain, has kept the other rates of deprecation unchanged.
A senior customs official said the rate of depreciation has been revised following requests from the reconditioned car importers' association.
"The rate of depreciation has been reduced for one to two-year-old cars following the instruction of the finance minister," he said.
Bangladesh Reconditioned Vehicle Importers and Dealers Association (BARVIDA) secretary general Mahbubul Haq Chowdhury Babur welcomed the revision of deprecation facilities, but expressed his frustration over the unusual delay in issuance of the order.
"We hail the decision to salvage the sector. Importers will be able to release nearly 200 stuck-up cars from ports now," he said.
However, importers have to bear a Tk 1,50,000 port charge for each car along with the payable customs duty before their release due to delay in issuance of the order, he added.
"Reconditioned car importers placed the proposal on July 1 last to amend the rules. It took eight months after that," Mr Babur said.
He, however, urged the government to reconsider the cutting of 5.0 per cent depreciation facilities for one to two years old cars.
He said price of the said category's 1500 CC cars will go up by Tk 1,50,000 each due to cut in the facility.
In the last FY, there was 35 per cent consolidated depreciation facility for five-year-old cars. The government amended the rules in the budget for 2013-14 by offering year-wise depreciation for reconditioned cars.
According to the customs rules, a car will be considered as reconditioned after 365 days of its use before import.
Car importers said in real sense, the facility has been offered for one-and-half-year-old used cars. Reconditioned car importers are enjoying depreciation facility for maximum five-year-old cars up to 45 per cent.