Bangladesh Proposes Higher Import Duty on Used Cars

In the proposed budget for the 2008-09 fiscal year (FY) the government has suggested the following:

• 20 per cent SD (Supplementary Duty) on vehicles of up to 1500cc
• 60 per cent SD on vehicles between 1,501 and 2,350cc
• 100 per cent SD on vehicles between 2,351cc and 3,500cc.

This rates are only applied to used, also called reconditioned, cars. It may change before the budget is put into effect as the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) argues it should be reduced.

BARVIDA believes that raise the taxes on reconditioned car imports will hold back the current progress the economy is experiencing. The connection is that many small and medium businesses rely on the cheaper used car imports to do their business. We will have to see what comes as most vehicles imported come from Japan.

– Source: The Daily Star

Tags: Bangladesh, barvida, buy, duty, export, Import, japan, japanese, JDM, motor vehicle, reconditioned, second-hand, tax, Trade, used car