TBT DESK: The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has called for a reduction in import duties on hybrid, plug-in hybrid and reconditioned vehicles in the upcoming national budget, arguing that such a move would make cars more affordable while accelerating the country’s shift towards environmentally friendly transport.

At a press conference in the capital on Saturday, BARVIDA president Abdul Haque said the current duty structure remains a major barrier for middle-income buyers, even as demand persists amid rising global vehicle prices and currency pressures. 

He maintained that lowering duties on fuel-efficient vehicles, particularly those imported from Japan, would not only widen access but also encourage cleaner mobility. “Greater use of hybrid vehicles will benefit both consumers and the state in the long run,” he noted, adding that increased sales would ultimately boost government revenue.

The association also proposed raising the permissible age limit for imported vehicles from five to eight years, citing supply constraints in source markets following the pandemic and higher global prices. According to BARVIDA, such a revision would ease pressure on the foreign exchange market, bring down retail prices and expand consumer choice. 

Highlighting the sector’s economic footprint, the organisation said the reconditioned vehicle trade involves around Tk 200 billion in domestic investment, contributes roughly Tk 60 billion annually in revenue, and supports the livelihoods of nearly half a million families directly and indirectly.

BARVIDA further demanded the withdrawal of supplementary duty on microbuses used in public transport and a reduction in duties on pick-up trucks, widely used in commercial activities. It also urged the government to eliminate what it described as tariff discrimination between new and reconditioned vehicles.

The association warned that the sector has been under strain due to declining imports and sales in recent years, despite steady demand. A chart included in its press material (page 2) shows a downward trend in vehicle imports over the past decade, reflecting tighter economic conditions and reduced purchasing power. 

Industry leaders said the upcoming budget presents an opportunity to rationalise the tax regime and support a sector that plays a significant role in employment, transport and revenue generation.