Prices of some cars will go down due to cut in supplementary duty (SD) while the prices of some cars, including the hybrid ones, and microbuses, will shoot up for raising the SD slab in the next fiscal.
"It is proposed to unify the existing two slabs of 1,501 to 1,750CC and 1,751 to 2,000CC motor cars into one slab of 1,501 to 2,000CC and fix 100 percent SD thereon while maintaining the other duties and taxes unchanged,” AMA Muhith said in his budget proposal.
The existing 250 percent SD applicable on motor cars falling between 2,001 to 2,750CC was proposed to be cut to 200 percent while the year-wise depreciation system shall continue.
Meanwhile, the facility given to 1500 to 2500CC new hybrid vehicles should be limited, the minister said.
"In the budget for FY 2014-15, I propose imposition of 60 percent SD on new hybrid cars from 1,500 to 2,500CC which will encourage importation of more quality and environment-friendly vehicles yielding more revenue," the minister added.
Noting that the microbuses are being imported "excessively", the finance minister today proposed raising SD to curb the trend.
"Low rates of supplementary duty have encouraged significant increase in import of microbus and double cabin pickups which require some control," the minister said in his budget proposal.
Muhith proposed to raise SD rates from 30 percent to 45 percent on microbuses of 1,501CC to 1,800CC engine capacity.
Sixty percent of SD on 1,801 to 2,000CC microbuses will remain unchanged.
A 30 percent SD has been proposed for motor vehicles falling under HS code 8702.10.40 with seating capacity not exceeding 15 persons.
Moreover, present 30 and 45 percent SD rates on double cabin pickup up to 1,500CC and from 1,501 to 2,750CC are proposed to be raised to 45 and 60 percent respectively
Meanwhile, completely knocked down (CKD) vehicle importation has been given special benefit to encourage progressive manufacturing.
"Very little has been done by the users of this facility for progressive manufacturing. In view of this, the present 45 percent SD rates applicable to CKD motor jeeps having cylinder capacity above 2,000CC is proposed to be increased to 60 percent," Muhith said.