Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 29 Fri. June 25, 2004  
   
Business


Bada against increase in suppl duty on cars


Bangladesh Automobiles Distributors Association (Bada) has urged the government to re-fix the supplementary duties proposed in the national budget for FY 2004-05 on the import of new vehicles.

The association in a post-budget reaction demanded withdrawal of supplementary duty on 850 to 1649cc cars for which the finance minister proposed 30 percent duty.

The car distributors also demanded that supplementary duty should be brought down to 20 percent for 1650cc to 3000cc cars from the proposed 40 percent while the suggested 90 percent duty on cars above 3000cc vehicles should be brought down to 50 percent.

In a press statement issued yesterday the association said they are frustrated with the proposal to raise the supplementary duty from 15 percent to 20 percent in different categories of imported vehicles.

The association said the government in the budget for FY2002-03 reduced the supplementary duty to encourage import of new car. "It attracted investors to engage in the business of car import."

"But with the policy shift by the government, the investors are getting increasingly frustrated as their business will be seriously hurt with the new budgetary proposals."

There should be consistency in government policy as any shift from such policies forces investors to count heavy losses, the Bada statement added.

Arguing for their demand for zero duty on 850cc to 1650cc vehicles the importers said these cars are not in the list of luxurious goods. The middle class and upper middle class people are the main customers for these cars.

If the government does not revise the proposed duty structure, the people will lose their capacity to buy new cars at reasonable prices, they said.