Bike registration fee to come down further

Sohel Hossain Patwary

13 February, 2021 12:00 AM printer

Bangladesh Road Transport Authority (BRTA) has proposed to withdraw the 15 per cent supplementary duty on the registration fees of motorcycles.

The BRTA’s proposal came after the government had halved motorcycle registration fees earlier this month.

Withdrawal of the supplementary duty will help boost the sales of the two-wheelers amid its growing popularity in Bangladesh, market insiders said.

As per the new rate, the registration cost for a motorcycle of up to 100cc came down to Tk 2,000 from previous Tk 4,200. For bikes over 100cc, the registration fee has been cut to Tk 3,000 from Tk 5,600.

Under the VAT Law, customers have to pay value-added tax (VAT) and Supplementary Duty (SD) on the motorcycle registration fee. Each buyer has to pay 15 per cent VAT and 15 per cent supplementary duty on the registration fees.

In a letter, BRTA has written to National Board of Revenue to withdraw supplementary duty on the motorcycle registration fee.

According to BRTA data, a total of 3,125,635 motorcycles are registered till now across the country. Of those, there are around 795,196 registered motorcycles only in Dhaka city.

It is reported that a large number of motorcycle are plying in the roads without registration across the country.

As the registration fees have come down and duty is going to be slashed; people will be more encouraged to register their bikes.

The number of motorcycles began to increase after various companies started motorcycle-based ride-sharing services in Dhaka during the last two years.

Currently, Uber, Pathao, Obhai, Sohoz and many other companies are offering rideshare services on motorcycles in Dhaka.

The government earns around Tk 20 billion a year in revenue from the duty, tax, and VAT imposed on bike registration.


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