Vehicle importers in Bangladesh have called for reduced duties on reconditioned electric and hybrid cars in the upcoming national budget, citing the country’s ongoing energy crisis and the need to ease fuel costs.
The demand was made at a press conference organised by the Bangladesh Reconditioned Vehicles Importers and Dealers Association in the capital’s Bijoynagar area on Saturday.
Leaders of the association said import taxes on reconditioned hybrid and plug-in hybrid vehicles (PHEVs) should be lowered to promote fuel-efficient transport, while also proposing an increase in the age limit for imported used vehicles from five to eight years. They also called for reduced duties on microbuses and pickup trucks.
Push for affordable, fuel-efficient vehicles
BARVIDA leaders argued that rationalising duties and revising import policies in the upcoming budget would help keep vehicle prices within the reach of middle-income consumers. They said such measures could also save foreign exchange, reduce fuel consumption and boost government revenue through market expansion.
In a written statement, BARVIDA President Abdul Haque said the government’s planned Electric Vehicle Industry Development Policy 2025 includes tax incentives for EV adoption, but key challenges remain.
“Charging infrastructure, uninterrupted electricity supply, waterlogging resilience and servicing networks are still inadequate,” he said, adding that hybrid and plug-in hybrid vehicles offer a practical alternative given current conditions.
He also noted that reconditioned Japanese domestic models imported by members are often “as good as new,” with strong resale value and easy access to affordable spare parts.
Allegations of VAT harassment
The association also raised concerns over value-added tax (VAT) audits, alleging excessive scrutiny by authorities.
BARVIDA Secretary General Riaz Rahman said businesses are legally subject to VAT audits for up to five years, but officials are requesting documents dating back to the inception of companies and focusing heavily on records from the COVID-19 period.
“Maintaining regular documentation during the pandemic was not always feasible, yet we are being harassed with such demands,” he said.
Another leader, Habibur Rahman Khan, claimed that nearly 90% of businesses—particularly in Chattogram—have been brought under audit, far exceeding the usual random selection of 5–10%. He alleged that some firms have been asked to provide seven years of records, with one business reportedly facing a fine of Tk 40 million.
Industry representatives warned that such measures could discourage business activity and investment in the sector.
Other BARVIDA leaders, including vice presidents Saiful Islam and Farid Ahmed, joint secretary Syed Jaglul Hossain and treasurer Md Saiful Alam, were also present at the event.