Automobile policy introduced to promote local manufacturing
The government has issued a policy which comes with tax and export incentives to encourage entrepreneurs to establish automobile plants here in Bangladesh.
As per the policy issued on September 21, investors will get the opportunity to import capital machineries and necessary equipment to make cars at zero-duty.
Besides, commercial vehicle manufacturers will get duty-free access to import of auto parts for four years.
On the other hand, the investors will get concessional loan to strength supply chain to market the locally manufactured commercial vehicle, according to the "Automobile Industry Development Policy 2021" issued by the industries ministry.
The government will provide 15 per cent incentive to encourage exports of locally made cars, said the policy.
The country's automobile industry has been considered as a potentially major industrial sector for the last two decades as it has registered impressive annual compounded growth and contributes greatly to the national economy.
The sector is nearing critical mass thanks to its ability to adopt new technologies and increased efficiency in human resource management.
Bangladesh's automobile industry could even become a part of the global supply chain in the future, the policy said.
The growing demand for cars, motorcycles and such is a result of the rise in purchasing power among the general public, it added.
The policy aims to provide a clear roadmap on how to take the country's evolving automotive ecosystem further by implementing specific changes to the regulations that govern the design, technology, testing, manufacture, import and export, sale, use, repair and recycling of motor vehicles, their components and services.
It will also eventually discouraged the import of completely built-up units of used vehicles. This initiative will diversity the domestic automobile market as locally assembled cars are more affordable than their imported counterparts.
In turn, it will attract both local and foreign investment, leading to enormous socio-economic benefits, the policy said.
Regarding the quality of the vehicle the policy said the authority will set a standard matching with international standard for locally manufactured vehicle which shell be followed by the manufacturers.
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