50% depreciation on reconditioned car import demanded

Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has demanded to increase the depreciation benefit from 35 percent to 50 percent in importing reconditioned cars.

BARVIDA President Md Habib Ullah Don raised the demand at a pre-budget discussion with officials of the National Board of Revenue (NBR) on Monday (February 12).

He said that the provision of providing the highest rate of depreciation for the first year of any product is internationally accepted. As per the import policy, the year recorded is treated as the current year while calculating age of a car for providing depreciation.

“In terms of determining the rate of depreciation, we have proposed NBR to fix depreciation facilities at 0 percent for one-year-old reconditioned cars, 10 percent for two-year-old car, 20 percent for more than two years old, 30 percent for three years old, 40 percent for four years old and 50 percent for five years old car,” the BARVIDA president told the media after the meeting with NBR.

He said if this proposal is considered, the import of cars will increase which 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, creating new employment countrywide.

Habib Ullah said, “During the severe crisis of public transport, the introduction of healthy and modern public transport by reducing the supplementary tariff of microbuses has benefitted a large number of passengers. I hope that in the next budget also, policy support will be provided to import public vehicles used by the people engaged in production and the country’s development.”

Proposing to revise the CC slab and supplementary duty on import of old hybrid cars, BARVIDA president said since the import of reconditioned hybrid cars has been allowed, various studies have proved that both the state and consumers are benefiting from hybrid cars as they are good for the environment as well as fuel efficient.

BARVIDA believes that imports of environment and energy friendly hybrid vehicles will be facilitated if the proposed rates are considered.

At the discussion, NBR Chairman Abu Hena Md Rahmatul Munim said, “If duty support is provided, that facility is misused which ultimately damages the industry, because of this we have to consider many things before providing policy support.”