Prices of reconditioned cars likely to go up
Wednesday, 9 June 2010
Doulot Akter Mala
Prices of reconditioned cars might go up in the coming months as the government is now considering imposition of heavy duty on import of cars and cut their depreciation rates, aiming to scale up revenue collection.
The National Board of Revenue (NBR) is likely to cut depreciation to 25 per cent from 40 per cent and allow import of reconditioned car up to four years old instead of five years.
Last year, the government fixed importers' depreciation at 30 per cent for old, used and reconditioned vehicles not exceeding five-year old and reduced dealers' commission to 10 per cent.
The NBR will also make a rule for mandatory submission of manufacturer's certificate to customs authority to check under-invoicing in import of new cars.
The government might also slap 5.0 per cent regulatory duty (RD) on somefinished products imported in the highest ceiling of 25 per cent.
Last year, the government introduced the RD for the first time in a bid to scale up customs revenue collection from some finished goods.
There might be some minor changes in baggage rule also. The NBR is likely to cut the number of cigarette sticks to 100 from 200 under the baggage rule and raise duty on high-end television to Tk 1,00,000 from Tk 75,000.
In 2009-2010 fiscal, the government set duty rates at Tk 75,000 for plasma, LCD, TFT and similar technology televisions above 53 inches under the baggage rule.
However, the four-tier duty on import of capital machinery, basic raw materials, intermediate goods and finished goods might remain unchanged.
Prices of reconditioned cars might go up in the coming months as the government is now considering imposition of heavy duty on import of cars and cut their depreciation rates, aiming to scale up revenue collection.
The National Board of Revenue (NBR) is likely to cut depreciation to 25 per cent from 40 per cent and allow import of reconditioned car up to four years old instead of five years.
Last year, the government fixed importers' depreciation at 30 per cent for old, used and reconditioned vehicles not exceeding five-year old and reduced dealers' commission to 10 per cent.
The NBR will also make a rule for mandatory submission of manufacturer's certificate to customs authority to check under-invoicing in import of new cars.
The government might also slap 5.0 per cent regulatory duty (RD) on somefinished products imported in the highest ceiling of 25 per cent.
Last year, the government introduced the RD for the first time in a bid to scale up customs revenue collection from some finished goods.
There might be some minor changes in baggage rule also. The NBR is likely to cut the number of cigarette sticks to 100 from 200 under the baggage rule and raise duty on high-end television to Tk 1,00,000 from Tk 75,000.
In 2009-2010 fiscal, the government set duty rates at Tk 75,000 for plasma, LCD, TFT and similar technology televisions above 53 inches under the baggage rule.
However, the four-tier duty on import of capital machinery, basic raw materials, intermediate goods and finished goods might remain unchanged.