Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) wants an increase in their depreciation facility from 35 percent to 50 percent in the case of import of reconditioned motor vehicles in the next budget.
The BARVIDA president Md. Habib Ullah Don gave this proposal to the National Board of Revenue (NBR) at the pre-budget discussions on Monday.
BARVIDA President said that the provision of providing the highest rate of depreciation in the first year for any product is internationally accepted. For age calculation to provide depreciation, the year recorded is treated as current as per the import policy.
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In terms of determining the rate of depreciation, depending on the year and the nature of the vehicle, zero percent for one-year reconditioned vehicle, 10 percent for two-year-old vehicle, 20 percent for more than 2 years old, 30 percent for up to 3 years old, 40 percent for 4 years old and 50 percent for 5 years old.
He said, if this proposal is considered, the import of cars will increase. This provision will play an effective role in meeting the revenue targets of the NBR.
On the other hand, the market for world-class reconditioned cars at affordable prices will expand at the grassroots level. New employment will also be created, said BARVIDA President.
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Don said during the severe crisis of public transport, the introduction of healthy and modern public transport in its limited practical scope by reducing the supplementary tariff of microbuses used to transport large numbers of passengers.
“I hope that in the next budget too, the policy will favour the majority of the motor vehicles to keep the lifestyle of the people engaged in production and development dynamic,” he added.
They also proposed to revise the CC slab and supplementary duty on import of old hybrid cars.
BAVIDA said that since the import of old reconditioned hybrid cars has been allowed, various studies have proved both the state and consumers are benefiting from hybrid cars as they are good for the environment as well as fuel efficient.
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The vehicle importers demanded to increase the CC slab up to 4000 CC from 289 percent to 442.60 percent.
BARVIDA leaders believe that imports of the advanced technology environment and energy-friendly hybrid vehicles will be facilitated if the proposed rates are considered.
The NBR chairman Abu Hena Md Rahmatul Muneem in response said that if duty support is given, that facility is misused.
“When it is misused, the industry is affected. Because of this, we have to consider many things before giving policy support,” he said.