Tariff benefits demanded for electric car import till 2030

The Bangladesh Automobile Assemblers and Manufacturers Association (BAAMA) has demanded special tariff benefits on the import of electric cars till 2030 for the development of the electric car industry.

The organization raised the demand at a pre-budget discussion for the budget of 2024-25 fiscal year organised by the National Board of Revenue at its Agargaon office in the capital on Tuesday (February 27).

Currently, the import duty on electric propulsion motorcycles is 37 percent, which has been proposed to reduce to 31 percent. In addition, the duty of electric motorcars has been proposed to reduce from 89.32 percent to 37 percent, and the duty on the import of electric buses and trucks has been proposed to reduce from 58.60 percent to 31 percent, BAAMA said in its proposal.

At present, there is no HS code on the import of CKD (completely knocked down), a product that is delivered in parts and assembled at the destination by the consumer or the reseller. BAAMA has demanded that a separate HS code be set for CKD import fixing 15.25 percent duty.

According to the organisation, the electric vehicle is a new technological vehicle and currently the price of electric vehicles is higher than conventional engine-driven vehicles. Besides, people in our country are still not used to using electric cars. If it is possible to market electric vehicles at an affordable price, consumers will be encouraged to use electric vehicles.

At the pre-budget discussion, Aviation Operators Association of Bangladesh demanded withdrawal of import tax, customs duty, advance tax and advance income tax imposed on the import of aircraft, helicopters, aircraft engines, aircraft parts, and aircraft engine parts.

The Bus-Truck Owners Association in its proposal demanded reduction of existing VAT from 15 percent to 5 percent on AC bus fares.

Bangladesh Inland Waterways Association has demanded withdrawal of VAT on AC cabins in its proposal.
Bangladesh Inland Container Depot Association has demanded reduction of company tax rate to 10 percent, reduction of tax at source, and cancellation of advance income tax on import of capital equipment.

At that time, NBR Chairman Abu Hena Md Rahmatul Munim promised to scrutinise and review the proposals of various organisations placed at the pre-budget discussion.