Importers call for slashing duty on hybrid cars

Used car sellers yesterday urged the government to slash the supplementary duty on the import of old hybrid vehicles for fiscal 2018-19 to facilitate the use of such cars that offer better fuel economy than the conventional ones.

Importers currently have to pay 20 percent SD to bring hybrid vehicles of up to 1,600cc. The Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) demanded a 5 percentage point-reduction.

“Reduction in import tariff will encourage increased imports. This will reduce the pressure on gas used as fuel for cars,” said Barvida President Habib Ullah Dawn while placing the proposals for next fiscal year at a pre-budget discussion at the National Board of Revenue headquarters.

Barvida also urged amending the engine capacity slabs: the first slab would go up to 1,800cc from 1,600cc at present and the next one would go up to 2,500cc from 2,000cc.

For the second slab, which would comprise on vehicles of 1,801cc to 2,500cc, it demanded a cut in SD to 30 percent from existing 45 percent.

In the face of rising demand, the government has allowed the import of second-hand hybrid cars from this fiscal year and slashed the SD. The import of used hybrid cars has surged since the beginning of the fiscal year, according to Dawn.

“More of such cars will come in the next three months. We will establish two workshops to provide services to used hybrid cars,” he said. Barvida also demanded the withdrawal of SD on the import of electric vehicles. At present, 20 percent SD is applied on electric cars.

NBR Chairman Md Mosharraf Hossain Bhuiyan, who chaired the meeting, suggested businesses not to demand tax cuts everywhere as the budget's size is expanding every year. The budget for fiscal 2018-19 may increase by Tk 50,000 crore, so revenue collection will have to be increased by Tk 30,000 crore to Tk 40,000 crore.

He said the revenue administration would consider both a reduction in SD rate and revising the engine capacity slabs after examining the details.