Reconditioned automobile traders sought ‘full withdrawal’ of supplementary duty (SD) imposed on microbuses after finance minister proposed curtailing duty on the four wheeler import.
At a press conference on Wednesday, Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) leaders hailed the proposed tariff restructure on import of microbus, hybrid cars and jeep up to 2500cc.The CC or cubic centimeters is the measurement to define a car engine capacity.
Barvida President Abdul Haque made address of welcome while secretary general Mohammad Shahidul Islam shared the reactions at the association’s office in capital’s Paltan area.
The trade body leaders mentioned the proposed assistances will ‘revive and protect’ the local industries from setback of pandemic.
Barvida requested the government to allow 45 percent depreciation facility on import of reconditioned cars which is absent in the budget speech.
A country can set up automobile assembling industry when a foreign brand is capable of reaching 100 thousand units per year, according to assessment of Japan International Cooperation Agency (Jica).
“When the people of middle income group will be able to afford cars, the car markets will expand and the government’s revenue collection will also grow manifolds,” Mohammad Shahidul Islam, secretary general at Barvida, said.The trade body leaders also mentioned that the prices of reconditioned cars is going to be eventually higher, in some cases, than the new cars because of existing discrimination in customs.
The import of reconditioned vehicles reached to its bottom rock to 12,502 unit in the fiscal 2018-19 from 23,075 units in the fiscal 2017-18 and some 20,149 units in the fiscal 2016-17.
The declining trend in import of reconditioned vehicles keeps continuation even in the fiscal 2019-20.
Barvida further suggested the government to remain alert that local car manufacturing plants do not turn into merely a ‘screw driver industry’ with import of complete knocked down (CKD) cars.
Barvida vice presidents Mohammad Saiful Islam, Jashim Uddin Mintu, joint secretary general Mohammad Mokhlesur Rahman and Treasurer Mohammed AnisurRahman, Publication and Publicity Secretary Farid Ahmed and executive members Abu Hossain Bhuiyan (Ranu), Ziaul Islam, Muhammad Yunus and Anisur Rahman Khan were present.