• Friday, Sep 25, 2020
  • Last Update : 01:20 am

Budget FY19: Used car prices may rise, hybrid cars to become cheaper

  • Published at 04:48 pm June 7th, 2018
  • Last updated at 12:47 am June 9th, 2018
Reconditioned cars at Chittagong port Md Manik/Dhaka Tribune

The market size for reconditioned cars is around Tk5,000 crore and each year the size of the market increases by 15% to 20%, market insiders said

The price of used cars may see a hike. The government has proposed to reduce the year-wise depreciation facility on the import of reconditioned cars in the upcoming national budget.

“In the 2017-18 budget, yearly depreciation benefits for reconditioned cars have been restructured. I propose a further 5% reduction of current yearly depreciation benefits in the 2018-19 budget,” finance minister AMA Muhith said on Thursday in parliament.

Currently, reconditioned car importers enjoy a depreciation facility, ranging from 15% to 40%, on the basis of the production year of the vehicles.

However, the government wants hybrid or electric cars to dominate the streets. It has proposed a supplementary duty reduction on the import of 1600 to 1800cc hybrid cars from the existing 45% to 20%.

The duty structure changes were made considering the need for energy-efficient and environment- friendly means of transportation.

Around 99% of reconditioned cars in Bangladesh are imported from Japan.

Currently, the market size for reconditioned cars is around Tk5,000 crore and each year the size of the market increases by 15% to 20%, market insiders said.

Currently, there is no depreciation for cars less than one year old—while there is a 15% depreciation for cars one to two years old; 25% for cars two to three yearsold; 35% for cars between three to four years old, and 40% for cars between four and five years of age.

However, with the latest announcement by the finance minister about the budget, on Thursday, the government has brought down the facility by 5% for each of the slabs.

Bangladesh customs law does not allow for the import of any used car that is above five years old.

blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail