BARVIDA demands duty cuts on hybrid, reconditioned vehicles

It also demands increase of age limit of importable vehicles from 5 years to 8 years

FE REPORT | Published: May 02, 2026 22:41:14

BARVIDA President Abdul Haque speaks at a news conference held in its office in the city on Saturday

The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) on Saturday demanded cuts in import duties on hybrid and reconditioned vehicles in the national budget for the next 2026-27 fiscal year.
It also proposed increasing the age limit of importable vehicles from the current 5 years to 8 years. There is no age limit in the UK, Australia, and Thailand, while Pakistan is set to remove the limit after 2026, said the association, adding that the permissible age is 8 years in New Zealand, 15 years in Canada, and 7 years in Hong Kong.
BARVIDA President Abdul Haque made these demands at a news conference held in its office in the city ahead of the upcoming national budget.
He said that reducing duties on hybrid, plug-in hybrid and reconditioned vehicles imported from Japan will promote the use of environmentally-friendly transport and make car purchases easier for ordinary buyers and help the government generate more revenue.
The organisation also demanded the withdrawal of supplementary duty on microbuses used as public transport, a reduction in duties on pickups and elimination of tariff discrimination between new and reconditioned vehicles.
According to BARVIDA, there is a local investment of about Tk 200 billion in the reconditioned car import and marketing sector in the country. This sector generates about Tk 60 billion in revenue annually and creates employment for about 300,000 people directly and indirectly.
After the Covid-19 pandemic and the events of August 2024, car sales dropped significantly, while the period of stagnation has yet to ease, it said.
The association added that the motor vehicle sector is an economic indicator, noting that declining vehicle sales reflect weakening purchasing power among consumers.
Imports of reconditioned cars from Japan to Bangladesh fell significantly in January and February this year. Citing BRTA data, it mentioned that import decreased from 21,952 units in 2015 to 9,387 in 2025.
"Many traders in this sector are closing down due to continuous losses amid decline in imports and sales. This has put the livelihoods of about 300,000 people involved in the sector at risk," said the president.
The organisation said that their proposals are intended to raise government revenue, save valuable foreign exchange and promote the use of fuel-efficient vehicles.
"Up to 90 to 95 per cent of the microbuses used in the country have been converted to CNG or LPG and are operating in an environmentally-friendly manner," said the president, adding that "for the establishment of a new car industry, the domestic market size should be 100,000 units. However, currently the car market in Bangladesh is 25,000 to 30,000 units per year."
"We are paying a minimum duty of 129 per cent and a maximum of 826 per cent on the import of reconditioned motor vehicles. Due to this disparity, the price of reconditioned cars is falling more than new cars in some cases," he added.
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