The BARVIDA President at the press conference welcomed the Government’s initiative of formulation of ‘Automotive Industrial Development Policy 2020’. COURTESY
With the current perspective, the country needs a realistic, progressive and implementable policy so that a real automotive manufacturing industry is established which will also guarantee the protection of a stability in the long years’ business of import of reconditioned vehicles. Moreover, it is very important to reduce the discrimination in tariff in import of reconditioned cars and new ones for a greater interest of the market expansion of the cars in the country. Leaders of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) raised those issues at a virtual press conference on Wednesday.
BARVIDA also said the Government can collect a lot of revenue from the higher sales of cars among the rising middle income consumers at the time of the country’s graduation to a developing nation from the list of Least Developed Country (LDC). Abdul Haque, President of BARVIDA said those at the press conference from the association’s Bijoynagar office in the capital.
The BARVIDA President at the press conference welcomed the Government’s initiative of formulation of ‘Automotive Industrial Development Policy 2020’. BARVIDA being the nationalized trade body in the sector always in favour of establishing new sector wise industry like automobiles. Mr. Haque also said the production of the proposed ‘Made in Bangladesh’ or ‘National Car’ branded motor cars in Bangladesh will also be a pride for the BARVIDA.
However, the BARVIDA leaders observed that before establishing any new industry it is very important to consider the current situation of the industry concerned, the experiences of other countries and realities of the country. In this case, the leaders also suggested the Government so that the import business of four decade long reconditioned vehicle industry is not affected and duly protected.
BARVIDA also suggested the government to assess the impacts and effectiveness of automotive industrial policy by an independent and credible international agency. The leaders also said that the local business of imported reconditioned vehicles has been established with the investment of several thousand crores of taka which has also created employments for more than one lakh people directly or indirectly and has been contributing to the Government and to the economy with paying few thousand crores of taka as revenue to the Government’s exchequer every year.
At the press conference BARVIDA President also said he has already placed the proposals of import and distributions of reconditioned vehicles in a pre-budget meeting with the senior officials of the National Board of Revenue (NBR) held on 2 March, 2021.
Regarding an increase in depreciation benefit, BARVIDA said currently the yearly depreciation is given deducting the local tax (GST) in Japan and commission received by all kinds of dealers from all kinds of models of cars mentioned in the yellow books. And this is contradictory with the customs law of the country.
At the press conference, the BARVIDA leaders also said the import of reconditioned cars declined significantly over the last few years in Bangladesh because of a wide discrimination of duty between on import of reconditioned and new cars. As a result, the Government’s revenue collection from the sector also faced a stumble. Here it is worth mentioning that, as a trading body, the BARVIDA did not get any loan from the government sponsored stimulus package that has been giving over the last one year. Also, the Chattogram port is yet to waive the port demurrage charge that was levied last year by the port authority on the importers even during the general public holidays despite application by the BARVIDA, although the port authority has exempted the tax on container transportation. So, for the revival of the sector from the fallouts of the Covid-19, the BARVIDA wants to see the implementation of their placed proposals in the upcoming national budget for the fiscal 2021-22.
Mohammad Shahidul Islam, Secretary General and Mohd. Saiful Islam (Samrat), Vice president of BARVIDA also spoke on the occasion. Joint Secretary General Mohammad Mokhlesur Rahman, Vice President Md. Jashim Uddin Mintu and Executive Committee Members Abu Hossain Bhuiyan (Ranu) & Md. Yunus Ali were present.