BARVIDA seeks rollback of tax hike on reconditioned cars

Equal duty benefits for both brand-new and reconditioned plug-in hybrid vehicles demanded

FE Team | Published: June 20, 2026 22:39:15

FE REPORT
The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has demanded withdrawal of the proposed tax increase on mid-range fossil-fuel-powered reconditioned cars in the national budget for fiscal year 2026-27.
Warning that the move would significantly increase vehicle prices, reduce affordability for consumers, and ultimately lead to a decline in government revenue, the association also urged equal duty benefits for both brand-new and reconditioned plug-in hybrid vehicles.
In addition, BARVIDA has also called for policy support for hybrid vehicles.
BARVIDA President Abdul Haque made the demands at a press conference held at the Samson H. Chowdhury Hall of Dhaka Club in the capital on Saturday.
At the briefing, BARVIDA pointed out that although the government has offered significant duty concessions on imports to promote electric vehicles (EVs), adequate charging infrastructure has not yet been developed in the country.
Conversely, a widespread infrastructure for the use and maintenance of fuel-efficient and eco-friendly hybrid cars has already been established. Therefore, to build a sustainable transport system, the association called for bringing hybrid cars under the same policy support alongside EVs.
BARVIDA claimed that the reconditioned motor vehicle sector holds a local investment of around Tk 200 billion and contributes nearly Tk 60 billion in revenue annually.
Furthermore, this industry plays a crucial role in expanding the banking, leasing, and insurance sectors, while directly and indirectly generating employment for hundreds of thousands of people.
BARVIDA alleged that the proposed budget introduces new slabs of 1-1200 cc and 1201-1600 cc, replacing the previous 1-1500 cc category. This restructuring hikes the total tax burden on popular and fuel-efficient cars from 132.36 per cent to 159.80 per cent. As a result, the price of reconditioned cars-most commonly used by the middle class-will increase significantly.
According to BARVIDA, the price of a fuel-powered reconditioned Premio could increase by nearly Tk 300,000, while the price of an Axio could rise by around Tk 250,000.
The association warned that this tax hike will make it difficult for the middle class to afford cars, put traders' investments at risk, and ultimately hurt government revenue collection.
Regarding plug-in hybrid cars, BARVIDA stated that while the government provided duty benefits for brand-new vehicles, the same was denied to reconditioned ones. Instead, a 5.0 per cent regulatory duty has been retained on reconditioned plug-in hybrid cars, creating a clear disparity.
The organisation demanded that supplementary and regulatory duties be equalised for both brand-new and reconditioned plug-in hybrid vehicles, urging that this benefit also be extended to microbuses.
Additionally, BARVIDA proposed fixing the supplementary duty on 2001-2025 cc plug-in hybrid cars at 30 per cent and demanded that fuel-efficient hybrid cars be given the same duty benefits as plug-in hybrids.
The association emphasised that hybrid technology is eco-friendly and highly effective in saving fuel.
Speakers at the press conference further noted that existing disparities in the assessment of customs value between brand-new and reconditioned cars often cause the price of reconditioned cars to surpass that of brand-new ones.
Currently, importers have to pay duties ranging from a minimum of 159.80 per cent to a maximum of 1007.50 per cent on reconditioned cars, creating unfair competition at the market.
BARVIDA has urged the government to formulate a long-term and rational tax structure, eliminate duty discrimination, and provide necessary policy support for the sustainable development of the reconditioned motor vehicle sector.
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