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Wednesday, May 16, 2018

BARVIDA for duty benefit on imports of hybrid cars

Special Correspondent :
Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) have proposed for reduction of the supplementary duty on the import of reconditioned electric cars in the upcoming budget as a step to encourage the use of environment-friendly vehicles.
The association urged also to exempt duty on used hybrid cars so that buyers can avail low cost eco-friendly cars.
"We want duty benefit on imported hybrid and electric cars in the next budget to promote use of environment-friendly vehicles in the country," BARVIDA President Md Habib Ullah Dawn told The New Nation in an interview with him on Tuesday.
He said, they have already discussed the matters in a pre-budget meeting with the National Board of Revenue (NBR).
At the meeting, BARVIDA placed a set of proposals including withdrawal of supplementary duty on import of electric motor cars, restructuring of slabs of cc (engine capacity) and rate of supplementary duty (SD) for reconditioned hybrid cars and extension of depreciation facility for import of used cars.
"We have demanded zero duty import facility up to 3000cc slab of hybrid-reconditioned cars and withdrawal of 20 percent SD on electric used cars to encourage use of environment-friendly vehicles," said Md Habibullah Dawn.  
He said that BARVIDA had also sought the government approval of import of bus older than five years as the cities need better quality of public transport," he said.
Regarding restriction of cc slabs and SD rates for hybrid cars, he said that the government in the last budget allowed the import of reconditioned hybrid cars and imposed 20 per cent SD on 1,600cc cars, though Japanese manufacturers usually don't produce such cars.  "Hybrid cars are eco-friendly and fuel-efficient. Despite the fact, importers are not importing these cars due to high duty rate," said Habib Ullah Dawn.
He said the government should adopt necessary budgetary measures to encourage import of environment friendly cars considering environment pollution of Dhaka city's, which ranked the third most polluted city in the world.   
The recondition vehicle importers were supposed to enjoy five-year depreciation for import of used cars. But now they are getting three years depreciation due to inconsistency in a statutory regulatory order (SRO).
"We hope the NBR will issue a fresh SRO in this regard in the next budget for the benefit of the car importers," he said.
Reconditioned vehicle importers have paid Tk 2,200 revenue in the national coffer last fiscal. "Our contribution to the national exchequer is expected to increase this year due to rise in the import of reconditioned cars," said Habib Ullah Dawn.