In a bid to reduce the import of reconditioned cars and encourage the import of new environment-friendly and fuel-efficient vehicles, the government seems to be harsh in the next budget on the import of used cars, reports UNB.
According to sources at the National Board of Revenue (NBR), the government might change the depreciation rates on the reconditioned cars, which will also help the government get more revenue.
Currently, vehicles aged more than six months but less than one year get 15 per cent depreciation, those aged above one year but less than two years 30 per cent, those aged above two years but less than three years 35 per cent, those aged above three years but less than four years 40 per cent and those aged above four years but up to five years 45 per cent depreciation.
Originally, there was no depreciation for one-year-old cars in the budget for the fiscal year (FY) 2013-14.
But the NBR, through a Statutory Regulatory Order (SRO) dated March 9, gave the reconditioned car importers scope as they asked for it. It also reduced the deprecation facility by five per cent for used cars, aged between one to two years of age.
According to the importers, now the maximum import duty is 841 per cent while minimum 131 per cent on reconditioned motor vehicles.
Finance Minister AMA Muhith in a recent pre-budget meeting with Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) said the government wants to discourage the import of reconditioned cars to the country.
In the 35th Consultative Meeting of NBR that was jointly organised by NBR and the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on May 8, the finance minister said he had sent 18 notes to the NBR relating to the import of reconditioned and brand new cars for including in the next budget.
Talking about the issue, NBR officials told the news agency that the finance minister has already mentioned in different forums that he is not in favour of the import of old cars.
