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Muhith lukewarm on helping reconditioned car imports

  • Published at 03:53 am May 15th, 2013
Muhith lukewarm on helping reconditioned car imports

Used car dealers yesterday demanded that the government reduce import tax on reconditioned cars and remove discrimination in the price valuation of old cars, compared to the new ones.

Promising to look into the price valuation policy for old cars, the finance minister, however, told a delegation of car dealers that it would not be possible to reduce the tax on used cars in the next fiscal year.

“We will examine your demand to solve the problem of price valuation of old cars compared to new cars in the next fiscal year,” Finance Minister AMA Muhith said at a pre-budget meeting with the leaders of Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) at the ministry yesterday.

Muhith said the government wants to discourage the import of reconditioned cars in the country. 

Barvida president Habibullah Don placed a four–point demand, which included imposing 10% depreciation per year – from the current 30% - on imported reconditioned cars, raising deal commission to 25% from existing 10%, and withdrawal of supplementary duties on microbuses.

Meanwhile, the minister said the country’s two main ports – Chittagong and Mongla – are now overburdened with 4,000 reconditioned cars that remain unclaimed by the importers.

“If the owners do not get the cars released within three months, authorities will auction the vehicles,” Muhith pointed out.

Md Abdul Hamid Sharif, secretary general of Barvida, said the importers could not release the cars because of high taxes and ongoing political unrest.