Importers seek govt support for used hybrid cars
Reconditioned car importers yesterday appealed to the government to extend preferential treatment to used hybrid car imports to encourage the use of fuel-efficient and environment-friendly vehicles in the country.
Importers said arrivals of old hybrid cars will rise if the revenue authority assesses duty by considering the value of the car to be 25 percent lower than its retail price in Japan.
“We do not want any duty incentive. We want the revenue authority to assess duty of used hybrid cars at reduced value,” said MA Hamid Sharif, president of Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida).
The Barvida plea to the National Board of Revenue comes ahead of the formulation of budget for the upcoming fiscal year.
Used car sellers said the import duty for hybrid cars is the same as that for conventional-fuel vehicles. But since the hybrid cars cost more in Japan, the import costs, and subsequently the sales price in the local market, end up being on the high side.
It discourages local buyers from fuel-efficient and environment-friendly cars, Sharif said.
Prior to the current fiscal year, the government provided duty benefits to encourage the import of environment-friendly new hybrid cars, reduce fuel costs and curb carbon emissions. It slapped on a 60 percent supplementary duty this fiscal year.
Importers of used cars said the sales of hybrid cars are on the rise around the world. Up to 2014, nine million hybrid cars have been sold worldwide.
In Japan, hybrid cars make up 30 percent of the domestic market and the country is targeting to raise the share to over 70 percent by 2020, said Sharif.
“We have the possibility to import 90 percent of reconditioned hybrid cars from that share of 70 percent.”
Bangladesh will be the lowest carbon dioxide-emitting country by passenger cars in comparison with industrially developed countries, according to Shariff.
He said hybrid cars will not require CNG conversion, meaning the gas consumed by CNG-run vehicles can be diverted to productive sectors.
The Barvida-proposed measures will allow importers to bring in more used hybrid vehicles and attract more local buyers.
There will be no effect on revenue if the government keeps the duty on hybrid cars similar to those for conventional fuel cars, said Abdul Haque, managing director of Haq's Bay, one of the leading reconditioned car dealers and importers.
The government should facilitate the import of reconditioned hybrid cars as it will reduce carbon emission and save foreign currency for importing fuel, he said.
In another proposal, Bangladesh Bus-Truck Owners Association sought duty benefit for import of engines, machinery parts and other materials for the road transport sector.
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