BARVIDA demands raising age limit of reconditioned cars from 5 to 10 years 

In order to save foreign exchange, ensure easy availability of usable cars and raise government revenue, Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) President Abdul Haque has called for increasing the age limit for importing reconditioned cars from 5 to 10 years.

He said this at a press conference organized at his office in the capital on Thursday (April 8). Other BARVIDA leaders were present at the press conference.

Abdul Haque said although these imported cars of Japanese home models are called reconditioned, in reality these cars are almost new. They can be used safely for 20 to 25 years. Besides, these cars are also very popular with all classes of buyers.
 
He said that these cars are saleable even after using them for 25 years. The cars are durable and strong. The spare parts of these cars are readily available and at affordable prices. Moreover, the cars are fuel-efficient and environmentally friendly.

He further said there is no age limit for importing these reconditioned cars to the UK, Australia and Thailand. Again, Canada, New Zealand and Hong Kong import cars aged 7 to 15 years. In that case, there is no logic in setting the age limit for importing cars to 5 years in Bangladesh. 

On the other hand, importing 5-year-old cars will cost more. In this situation, allowing import of 10-year-old cars will increase the number of buyers in one hand and on the other foreign exchange will be saved by 50 percent. In addition, the government's revenue will increase.

Abdul Haque said 129 percent to 826 percent customs duty is imposed on import of reconditioned cars. Moreover, 20 percent of dealer commission and local tax of retailer in the Japanese domestic market are added to the new price shown in the Yellow Book published by the Japanese government. 

In this situation, it is essential to determine the exportable price by deducting 20 percent from the new price of 5-year-old cars imported from Japan, he said.

On another question regarding BRTA's car registration, Abdul Haque said the registration fee for reconditioned cars is Tk 27,508 to Tk 53,958 more than that of new cars. The disparity in registration fees for new and old cars must be removed immediately.  

He said in developed countries including the UK, registration fees are paid through dealers - buyers do not go there. We also want such initiatives that are people-friendly and business-friendly.

He said that 10 to 15-seater microbuses are also used by many people. There is a huge demand for this class of vehicles in industrial establishments, employee transportation, student transportation, and the tourism industry.
 
Earlier, there was no duty on the import of these cars. A 30 percent import duty has been imposed on these microbuses since the 2014-15 fiscal year. As a result of this duty, both on import and sales of this popular transport have decreased. He demanded that import duties on microbuses must be withdrawn.