Tax incentives for hybrid cars sought

Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) leaders sought Saturday tax incentives in the upcoming budget to popularise hybrid cars in the country considering their environment-friendly and fuel-saving features.
They urged the revenue board to scrap the separate HS code on import of such cars as these new-generation vehicles should enjoy similar tax facilities like other common used cars.
Currently, hybrid car importers enjoy duty-benefit for up to 2500 CC engine capacity.
At a pre-budget meeting, BARVIDA president Abdul Hamid Sharif said hybrid cars should get government support to enable people get access to the environment-friendly and fuel-saving new technology cars.
NBR chairman Nojibur Rahman chaired the pre-budget discussion held at NBR premises. It was also attended by other senior members and officials.
Citing incentives in other countries including Japan, European Union (EU) and Sri Lanka, he said the government will not lose any revenue with the incentives for import of hybrid cars as the overall expenditure on fuel and gas would be reduced.
Prices of hybrid cars are higher than that of the commonly used Toyota Axio cars as these cars include the fuel-saving and environment-friendly technology.
A VVTI engine Toyota Axio car costs at 1.6 million yen while it is 1.9 million yen for hybrid cars.  
"The tax incentive is necessary to encourage people to purchase hybrid car accepting the higher prices," the BARVIDA president said.
He sought year-wise depreciation facility similar to other reconditioned cars. He called for 25 per cent deduction on prices of reconditioned hybrid cars, shown in yellow book, at the time of valuation at the port.
The BARVIDA leaders called for amending the existing depreciation rules on calculation of age-limit of other reconditioned cars.   
In a written proposal, the association leaders sought withdrawal of existing 30 per cent Supplementary Duty on import of 10 to 15-seat microbuses.
Such microbuses are used as ambulance, student carriers, tourism, office, factory workers and should be considered as public transport, the leaders said.   
doulot_akter@yahoo.com