BARVIDA demands duty cut on microbus, hybrid car imports
Leaders of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) in a post-budget reaction welcomed the budget for proposing restructuring and reducing tariff on import of microbus, hybrid cars and jeep.
The second hand vehicles dealers association has also praised Finance Minister AHM Mustafa Kamal for considering BARVIDA budget proposals by declaring microbuses as public transports which will discourage the use of unsafe transports like Nosimon and Leguna.
However, BARVIDA has proposed full withdrawal of supplementary duty on import of widely used 10-15 seated microbus as it was not considered in the proposed budget.
BARVIDA Secretary General Mohammad Shahidul Islam presented the budget reaction at a press conference at the association office in the city on Wednesday. Its president Abdul Haque also spoke while executive committee members were present.
BARVIDA leaders demanded granting that 45 percent depreciation facility on import of reconditioned cars and year wise depreciation facility. The association leaders said the budget is entrepreneurs, industry and business friendly, because it will strengthen the necessary measures for ensuring the health safety services and vaccination to face the challenges of the Covid-19 pandemic.
It will also widen social safety net to cover more poor and the new poor from the fallouts of the Covid-19 and further increase private sector investment by reducing tax for protection of local industries.
VAT exemption at production level, and reduction of Advanced Income Tax at import stage along with the stimulus for the agricultural sector is praiseworthy. Increasing the turnover ceiling of the small and medium scale business women to Tk70 lakh is also positive.
The association leaders said it is important to expand the car markets in the country to implement the government's vision of economic growth and at the time when Bangladesh is graduating to a developing country from a Least Developed Country (LDC).
It said the country can establish the car manufacturing plant when sales market size will reach to one lakh pieces in a year. The expansion of car market will expand the government revenue but it needs more expansion friendly incentives for middle income people the trade body said.
BARVIDA leaders said the budget will make prices of reconditioned cars higher than the new cars because of existing extreme discrimination in customs valuation of two types of cars. Buyers are declining while import of reconditioned cars is also going down.
The import of reconditioned vehicles reached to its bottom rock to 12,502 pieces in fiscal 2018-19 from 23,075 pieces in 2017-18 and around 20,149 pieces in 2016-17. The government's revenue collection also declined.
BARVIDA demanded careful move in setting up car manufacturing plant lest it does not turn out to be 'screw driving industry' by import of complete knock down (CKD) unit only for local assembling. It has also demanded the government attention that setting up of local manufacturing plant should not be destroying reconditioned car business in the country.
Vice Presidents of BARVIDA Mohd.Saiful Islam (Samrat) & Md. JashimUddinMintu, Joint Secretary General Mohammad Mokhlesur Rahman,Treasurer Mohammed Anisur Rahman, Publication and Publicity Secretary Farid Ahmed and Executive Committee Members Abu Hossain Bhuiyan (Ranu), Md. Ziaul Islam, Md. Yunus Ali and Dr. Md. Anisur Rahman Khan were present.