Reconditioned vehicles importers have urged the government to reduce import duty on different types of vehicles in the next fiscal year's national budget.
Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) in its budget proposal for 2004-05 fiscal year sought a revised duty structure for new, reconditioned and used vehicles.

The association proposed 15 percent import duty on maximum nine-seated old microbus, up to five-ton capacity pick-up, truck and delivery van and maximum 15-seated bus.

Besides, Barvida proposed 7.5 percent duty on 16-32 seated bus and zero duty on 33 or more seated bus, including double-decker.

In the proposal, the association said import of reconditioned vehicles has declined by 60 percent in the last two years because of irrational import duty structure.

As the government imposed similar duties on used and new vehicles and withdrew the depreciation valuation system in the budget of FY 2002-03, import of reconditioned vehicles drastically declined, Barvida leaders said.

According to Barvida, the association members used to import around 17,000 to 18,000 vehicles annually before the introduction of new duty structure. Now the number has come down to the level of 7,000 to 8,000.

Barvida in the budget proposal submitted to the National Board of Revenue urged the government to reintroduce the depreciation valuation system which helps importers make reconditioned cars available at low price.

Barvida president Abdul Mannan Chowdhury said before the budget of FY02-03 importers were entitled to have 20 percent depreciated value for 1-year-old vehicles, 32.50 percent for 2-year, 45 percent for 3-year and 50 percent for 4-year-old vehicles.

The withdrawal of the depreciation valuation system was a barrier to import of reconditioned car, which is popular among middle income people, he said.

"Reconditioned cars are environment-friendly. Countries like New Zealand and Australia are the highest reconditioned car importers from Japan," the Barvida president said.

Since 1977, Bangladesh imported over 7 lakh reconditioned vehicles such as private car, bus and truck. About 200 Barvida members along with 600 sellers are engaged in the reconditioned vehicles business.