Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has demanded to fix specific duty on import of reconditioning car.
The organisation also proposed to reduce import duty on pickups, dump trucks, fire fighting vehicles and other specialized motor vehicles and to formulate special VAT policy on sale and marketing of imported reconditioned motor vehicles.BARVIDA President Abdul Haque came up with the proposals at the pre-budget discussion for the fiscal year 2021-22 on Tuesday.
Abdul Haque referred that there are examples of imposing specific tariffs in many other countries. Specific duties may be imposed on basis of CC and motor vehicle types.
The duty on reconditioned vehicles may be charged as addition of a brand new cars’ duty at the rate of 10 percent for single year old, 20 percent for two years old, 30 per cent for three years old, 40 percent for four years old and 50 percent for five years old.
He said that the price of a brand new car is determined on basis of price declared by the importer. In this process, there is a tendency of tax evasion by making under invoicing and various loopholes.
Due to inequality, the total tax incidence of old cars is higher than new cars. The government is losing a huge amount of revenue as the sales of reconditioned cars have dropped drastically due to higher tariff, he added.
BARVIDA has also made several proposals including reshuffle depreciation rate, rearrangement of CC slab and supplementary duty rate, re-determination of fossil fuel vehicle (supplementary duty), revise of vehicle age calculation system for depreciation, reduced of supplementary duty on microbus used to transport mass passengers.NBR member (income tax policy) Alamgir Hossain said that BARVIDA’s proposals will be helpful for more revenue generation and the proposals will be placed at the policy-making level.
NBR member (Customs and VAT Administration) Saiful Islam, NBR Member (Customs Policy and ICT Department) Syed Golam Kibria, BARVIDA Vice Presidents Saiful Islam and Jasim Uddin Mintu, General Secretary Mohammad Shahidul Islam and Joint Secretary Mohammad Mukhlesur Rahman, among others, were present at the discussion.