Reconditioned car importers urge govt to raise depreciation rates

FE ReportbrReconditioned car importers have urged the government to raise the depreciation rates of the imported vehicles to check tax evasion and make car for the middle-class people affordable.brDepreciation rate for the four-year old reconditioned imported vehicles was 30 per cent. Now, the similar rate has been charged for six-year old vehicles, which still makes the car expensive like previously, said Abdul Huq, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) said at a press conference in the city Monday.brHe said The government will allow import of six-year old reconditioned vehicles with depreciation for four years only. It is unrealistic and illogical. We are requesting the government to raise the depreciation rate for the fifth and sixth year also.brThe commerce ministry on July 30 last issued a circular allowing import of six-year old utilised or reconditioned automobiles instead of earlier four-year old vehicles and withdrawing limitation of engine-capacity.brThe BARVIDA president also called upon the government to scrap the existing age calculation system and consider the manufacturing year as the starting age of the vehicles.brThe existing age calculation system of the reconditioned vehicles gives scope for false price declarations that deprive the government of earning more revenue from this sector, he said.brSome car importers are not getting more than 4000 imported vehicles worth nearly Tk 6.00 billion released from the Chittagong port due to the existing complex age calculation system, Mr. Huq said.brThe BARVIDA chief also demanded formlation of a Motor Vehicles Dealers Regulations Regulatory System for establishing discipline in import and marketing of the utilised or econditioned automobiles, he said.br