They also sought removal of 'discrimination' in the present tariff structure as it charges the old car importers more taxes than the new car importers are charged, expressing their dismay over the dull business they experienced in the last few years due to absence of government policy support.

"As the upcoming budget will be presented by the non-political caretaker government, we hope that a rational tariff structure for the reconditioned and brand new cars would be ensured in the budget," said Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), at a pre-budget press conference at a hotel in Dhaka yesterday.

He lamented that although the reconditioned cars grab almost 85 percent of the total market share, the importers of these cars are to pay duties ranging from 13.48 percent to 47.74 percent, an amount that is much higher than the amount the new car importers pay.

On the other hand, following the withdrawal of the ban on import of any reconditioned vehicle in 2002, the import was limited to up to 4-year old 1649cc used vehicles.

And then, a vested interest group grabbed the local car market by importing huge brand new cars, alleged the reconditioned vehicles importers.

They demanded that any restriction should go and like brand new cars import of all types of used cars be freely allowed.

They also sought a 50percent depreciation on 87.01 to 87.04 HS-code 4-year old cars.

They proposed that a lower tariff rate should be set for importing microbus and pick-up, truck and delivery van in the next budget.

"Reconditioned pick-ups, trucks and delivery vans have always played a significant role in transporting products of export-oriented industries as well as farm products. But the present policy discourages import of these vehicles," said the Barvida president.

When the new cars are imported through pre-shipment inspection (PSI), the importers of the Japanese reconditioned vehicles need to use the exporting country's domestic yellow book to see the price and determine the tax payable, he pointed out.

"This system also hampers the level plying field in the local car market as only 20percent depreciation has been allowed to import 4-year old cars, which was 50percent before 2002," the Barvida president said.

Haque said, "The present policy allows importing up to four-year old cars and thus pushes prices of reconditioned cars abnormally high. The government should allow import of up to six-year old cars to help reduce the prices".

Criticising the present taxation policy, the Barvida president said in the case of one year old car, the depreciation is estimated at 0 percent, 10 percent for two-year and five percent for three- and four-year old vehicles. "So, the duties on four-year old and three-year old vehicles are almost the same."

All these taxation policies are the main reasons for increasing the prices of reconditioned vehicles, Haque observed.

Dr Mustafizur Rahman, chairman of the Institution of Development Studies (IDS), Md Abdul Hamid Sharif, the Barvida secretary general, and Anwar Hossain, former president of the Barvida, were present at the press conference.