Private cars have moved beyond the reach of the middle class as prices surged due to the high US dollar rate and depreciation of the taka, dealing a major blow to the reconditioned vehicle market, traders said.
They called for cuts in import duties to revive the sector.
Business leaders made the remarks today (29 April) at a consultative committee meeting on the upcoming budget, organised by National Board of Revenue and FBCCI at Pan Pacific Sonargaon Dhaka.
Bangladesh Reconditioned Vehicles Importers and Dealers Association President Abdul Haque said, “The market once stood at around 30,000 vehicles a year, but fell below 10,000 last year. Registrations at Bangladesh Road Transport Authority have also dropped to one-third.”
He said car prices had risen so sharply because of the dollar exchange rate and taka depreciation that middle-income people could no longer afford to buy vehicles.
He also said that after the mass uprising, some financially capable people had left the country and hidden their wealth abroad.
Against this backdrop, he stressed the need for lower duties, saying reduced taxes on cars would revive the market and increase revenue collection.
The chief guest at the programme was Finance and Planning Minister Amir Khosru Mahmud Chowdhury. Special guest was Commerce Minister Khandaker Abdul Muqtadir.
The Barvida chief also proposed special initiatives to attract expatriate investment.
“Many countries offer citizenship or special privileges in exchange for investment. Bangladesh could also consider such facilities for a fixed period to encourage expatriates to invest,” he said.
He added that the duty gap between electric vehicles and conventional vehicles currently stood at around 93%, which should be brought to a rational level.
“If policy support is ensured and the duty structure simplified, the car market will recover, employment will rise, and the government will earn more revenue,” he said.
He further alleged that some online services and administrative complications were causing suffering for traders, and urged quick action to resolve the issues.
NBR Chairman Abdur Rahman Khan chaired the meeting. The session was moderated by Commerce Ministry Additional Secretary and FBCCI Administrator Abdur Rahim Khan.
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