Bangladesh Motorcycle Assemblers and Manufacturers Association (BMAMA) has urged the government to allow them to import painted CKD parts for next five years following a decline in trade during the coronavirus pandemic.
It also demanded extension of the VAT exemption facility until 2025 from June 2020.
The motorcycle makers requested the government to reduce the cost of registration to help boost sales of motorbikes.
BMAMA president Matiur Rahman said the industry showed a 200 per cent growth in last five years thanks to joint efforts of the government and private sector.
The sector has been enjoying VAT exemption facility under SRO 175 which will expire in June 2020.
At the very beginning of this fiscal year, he said, the association forecast a 20 per cent growth. "But it seems like a dream now as we are predicting a 30 per cent fall in business amid the pandemic which cut income of our targeted consumers."
He added, "Due to such situation, we are requesting the government to extend the VAT exemption facility for five more years."
BMAMA in a letter, sent to the finance ministry, said no experts or engineers are available now who could complete painting of parts and components.
To assemble motorcycles within a short time, it is now urgent to import painted parts and components known as completely knocked down (CKD) parts of the motorcycles, said the letter.
Currently, the registration cost is 25 per cent of motorcycle price or almost Tk 22,000 per unit, it added.
The government imposed 10 per cent supplementary duty on total fees including registration, road tax and other charges in the outgoing fiscal year.
Such high registration cost hinders the growth of the sector, according to BMAMA.
The association demanded fixation of Tk 4,000 for registration per motorcycle to attract buyers.
Motorcycle sales increased to 0.5 million units a year which was 0.15 million units three years back.
The sector employed 0.2 million people directly or indirectly with an investment of Tk 80 billion. It also generates revenues worth Tk 20 billion annually.
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