The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has proposed the removal of VAT on ambulances and buses, along with a reduction in supplementary duty on microbuses. The proposal was made during a pre-budget discussion at the National Board of Revenue (NBR) headquarters on Tuesday.
BARVIDA President Abdul Haque emphasized that high supplementary duties have significantly increased vehicle prices. “A microbus that previously cost Tk 2 million is now priced at Tk 4 million due to excessive duties. Meanwhile, Members of Parliament (MPs) can import vehicles duty-free, but the general public faces an 800% tax. This is unreasonable,” he said, urging the NBR to reconsider the taxation structure.
He argued that reducing the tax burden would boost government revenue by increasing vehicle sales. “People want to buy cars but cannot afford them due to the high tax rates,” he added.
In response, the NBR Chairman acknowledged the concerns, stating, “We are considering the matter and will explore possible solutions. Japanese cars have strong resale value, and we will take necessary steps to promote them.”
BARVIDA also proposed a reduction in supplementary duty for 10–15-seat HiAce-type microbuses, depreciation rate adjustments, restructuring of hybrid vehicle CC slabs, and revisions to fossil fuel vehicle taxes. Additionally, the association urged tax reductions on electric and hybrid vehicles.
LND/BG
