The government has proposed increasing the annual tax on cars by 50-67 percent from the upcoming fiscal year alongside increasing the supplementary duty on all services rendered by the Bangladesh Road Transport Authority (BRTA) from 10 percent to 15 percent.
Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), in its post budget reaction has requested the government not to increase the cost of owning a car as alongside personal use, a large number of middle-income people buy cars to serve commercial purposes.
Welcoming the proposed budget aimed at supporting the economy and local industries, the national association of 870 car importers and dealers suggested using creative ways to implement the plans in the national budget.
Barvida also thanked the government for not increasing duties against car imports.
The sector has been a significant taxpayer over the past two decades. But in recent years, adverse policy is pushing the reconditioned car businesses into difficulties as import duties against reconditioned cars often surpass that for a brand new car.
The association is expecting that the government will consider the matter and address the technical points through Statutory Regulatory Orders (SROs) in coming days.
It has also repeatedly expressed its strong will to pay taxes and fees of over Tk1,000 crore sooner if the government responds to their plea for waiving port fee against imported cars for April and May – the days of the national shutdown.
There are around 8,000 cars stuck in the Mongla and Chattogram sea ports of the country as the dealerships are filled with around 4,000 unsold cars.
Barvida, in a press release on Monday, has also called for a smoother and equal access to the government-declared stimulus financing packages for all sectors.
The body also complimented the prime minister and the finance minister for the initiative to revive the coronavirus-ridden economy and provide various assistance to save the local industries in the proposed budget.
"Amid this Covid-19 epidemic, it is hard to prepare a budget. So, we admire the prime minister and finance minister for presenting a balanced budget aimed at expanding the social safety net, providing necessary assistance to business and entrepreneurs and maintaining the dynamism of the country's economy as a whole and keeping the nation hopeful.
However, in the implementation of the financial assistance package of the government, proper monitoring and emphasis should be given to the micro, small and medium sector," reads the press release.
Barvida has also been instrumental in creating a comprehensive tax structure in the country through the payment of income tax, duties and VAT at the individual level through the import of reconditioned cars, reads the press release.