Bikers form human chain in front of NBR office protesting potential new tax

Bikers have formed a human chain in front of the National Board of Revenue (NBR) headquarters in Agargaon, the capital, protesting the potential imposition of a new tax on motorcycles. 

At around 12:00pm today (17 May), about 200 motorcycles were seen parked in a line on the road in front of the NBR building. 

Standing on the sidewalk, bikers held various placards and chanted slogans demanding the withdrawal of the tax.

Speaking on behalf of the motorcycle riders, AKM Imon said, “We have seen in the news that there is a plan to impose a new tax on motorcycle owners in the upcoming budget. 

“Those who own motorcycles might be brought under the tax net and subjected to advance income tax [AIT]. We demand the withdrawal of this decision.”

He further added, “A bike is not a luxury item. Buyers already have to pay duties and taxes while purchasing a motorcycle. Imposing a new tax on top of that will create pressure on the common people. 

“We will submit a memorandum to the NBR chairman requesting a reconsideration of the matter.”

Although the human chain caused some slow-moving traffic on one side of the road, vehicular movement remained normal.

The NBR has been weighing a new AIT regime for the country’s lakhs of motorcycles, while simultaneously eyeing to hike existing AIT on high-capacity (CC) vehicles, finance ministry sources said earlier.

The tax regulator is also considering imposing AIT on the burgeoning fleet of battery-run autorickshaws, popularly known as “Bangla Tesla” in the country.

A proposal in this regard was placed before Finance Minister Amir Khosru Mahmud Chowdhury last week during a budget-related meeting. 

Currently, motorcycle owners pay road tax along with registration fees. The tax stands at Tk2,300 for two years and Tk11,500 for 10 years. For other motor vehicles, annual taxes currently range from Tk25,000 to Tk350,000 depending on engine capacity.

The NBR said motorcycles up to 110cc are likely to remain exempt from the new AIT.

Motorcycles between 111cc and 125cc could face an annual tax of Tk2,000, while owners of bikes between 126cc and 165cc may have to pay Tk5,000 a year, the official said. Motorcycles with engines above 165cc may be subject to an annual advance income tax of Tk10,000.

Experts said taxes on expensive motorcycles could be justified, but warned that a large number of bike users are ride-sharing workers, delivery operators, small entrepreneurs, sales representatives and medicine suppliers.

Many lower-income families also use motorcycles as an affordable means of transport for school commutes, shopping and other household needs, they said. Analysts warned that imposing new taxes on such motorcycles would increase costs for a significant section of lower-income people.