BARVIDA demands 45% depreciation on reconditioned car import
BARVIDA demands 45% depreciation on reconditioned car import
|Press conference of BARVIDA|
Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) welcomes the proposed budget for the fiscal 2021-22 for proposing assistances which will revive, bring dynamism, protect local industries and economy and stimulate the rural economy of the country.
Secretary General of BARVIDA Mohammad Shahidul Islam was speaking at a press conference on the proposed budget at the association office in Dhaka Tuesday (June 9).
BARVIDA President Abdul Haque gave a welcome speech at the press conference. The members of the executive committee and general members of the association were also present.
The BARVIDA welcomes Prime Minister and Finance Minister for restructuring and reducing the tariff on import of microbus, hybrid cars and jeep (from 1801CC up to 2500CC). The importers association also welcomes and expresses gratitude to Finance Minister for considering the proposals of BARVIDA and declaring the microbuses as public transports through discouraging the use of unsafe transports like Nosimon and Leguna.
However, BARVIDA is proposing to the Government for full withdrawal of supplementary duty on import of widely used 10-15 seated microbus (HS Code 87.02) as it was not considered in the proposed budget, a press release said.
BARVIDA leaders demanded the Government for granting their previous demand of 45 percent depreciation facility on import of reconditioned cars and year wise depreciation facility as the Finance Minister did not propose those in his budget speech for the fiscal 2021-22.
BARVIDA thinks the proposed budget is entrepreneurs, industry and business friendly. Because -
• The proposed budget is very positive in strengthening the necessary measures for ensuring the health safety services and vaccination to the people and to face the challenges of the Covid-19 pandemic.
• The government has proposed very necessary and very important steps in widening of the areas and increasing the allocation of the social safety net to cover more poor people and the new poor those who have gone below the poverty line from the severe fallouts of the Covid-19.
• It is expected that the private sector investment will increase due to proposed reduction of tax for protection of the local industries.
• The proposal of exemption of VAT at production level, and reduction of Advanced Income Tax at import stage along with the stimulus for the agricultural sector is praiseworthy.
• The proposal of increasing the turnover of the small and medium scale women enterprises to Tk70lakh is of course a praiseworthy initiative.
BARVIDA thinks last year Bangladesh’s achievement of the Asia’s highest economic growth at 5.2 percent is a matter of relief and proud for the country and it was possible because of wise guidelines by our Prime Minister in facing the challenges of the Covid-19 and for the government’s smart fiscal management.
However, BARVIDA also thinks it is very important to take innovative steps in socio-economic managements by addressing the issues like investment, production, employments and collection of expected revenue while implementing the proposed budget by facing the challenges of the Covid-19. Alongside, BARVIDA thinks the Government will have to emphasise importance of efficiency and proper monitoring in implementation of the proposed budget.
The association leaders at the press conference also said it is important to expand the car markets in the country to implement the Government’s vision of economic growth and at the time when Bangladesh is graduating to a developing country from a Least Developed Country (LDC). Japan International Cooperation Agency (JICA) in an estimate said it would be logical to establish the car manufacturing plant in the country when the car sales market size will reach to one lakh pieces in a year. When the people of middle income group could afford the car prices in the country, the car markets will expand and the government’s revenue collection will also grow manifold.
BARVIDA leaders also said in some cases the prices of reconditioned cars is going to be eventually higher than the new cars because of existing extreme discrimination in customs valuation of two types of cars. As a result, the number of buyers is declining and import is also going down and the businessmen in this sector have been facing severe financial crisis. The import of reconditioned vehicles reached to its bottom rock to 12,502 pieces in the fiscal 2018-19 from 23,075 pieces in the fiscal 2017-18 and some 20,149pieces in the fiscal 2016-17. The declining trend in import of reconditioned vehicles keeps continuation even in the fiscal 2019-20. The Government’s revenue collection also declined significantly with the decline of the import of reconditioned vehicles.
Beside, the BARVIDA also suggested the Government to be careful so that its initiative of setting up of the car manufacturing plant does not turn into merely a ‘screw driving industry’ by import of complete knock down (CKD). BARVIDA also urged the Government to be extra careful so that the country’s long time established imported reconditioned car business is not affected in the time of open market policy. BARVIDA leaders said it is very difficult task to present a normal budget in the time of economic vulnerability due to the severe fallouts of the global pandemic. We welcome and appreciate the Prime Minister and Finance Minister for proposing a balanced budget and for keeping the nation’s expectations alive during the time of pandemic. BARVIDA welcomes the budget, as despite all odds, both Prime Minister and Finance Minister raised the allocation in public welfare and proposed expansion of social safety net programmes to stimulate the whole economy of the country by giving assistances to the entrepreneurs and businessmen.
BARVIDA leaders also wants to extend the helping hands in implementation of the Government’s proposed budgetary pledges from the sector by paying proper amount of revenue to the public exchequer which is very necessary for the Government in continuation of the development activities and to face the challenges of the Covid19.
Vice Presidents of BARVIDA Mohd.Saiful Islam (Samrat) & Md. JashimUddinMintu, Joint Secretary General Mohammad MokhlesurRahman,Treasurer Mohammed AnisurRahman, Publication and Publicity Secretary Farid Ahmed and Executive Committee Members Abu HossainBhuiyan (Ranu), Mr. Md. Ziaul Islam, Md. Yunus and Ali Dr. Md. AnisurRahman Khan were present.
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