Reconditioned auto importers, dealers seek duty cuts on hybrid cars ahead of budget

The Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) has called on the government to cut duties on fuel-efficient hybrid and plug-in hybrid vehicles in the upcoming national budget.

At a press conference in the capital today (2 May), Barvida President Abdul Haque also demanded withdrawal of supplementary duty on microbuses used in public transport, reduction of taxes on pickup trucks, and an end to tax disparities between new and reconditioned vehicles. The association further proposed extending the import age limit for reconditioned vehicles from five to eight years.

Barvida said lower duties on hybrid and plug-in hybrid vehicles are necessary to encourage fuel efficiency, while also urging reduced taxes on reconditioned electric vehicles (EVs) imported from Japan.

According to the association, the reconditioned vehicle import and trading sector has attracted around Tk20,000 crore in local investment and generates roughly Tk6,000 crore in annual revenue. It also supports several lakh jobs directly and indirectly, including through backward linkages.

In its statement, Barvida said the sector contributes to the economy through import duties, income tax, VAT and road tax, while also supporting the expansion of banks, leasing firms and insurance companies linked to vehicle financing and trade.

The association noted that although foreign exchange pressures have eased since 2024, unchanged duty structures and a weaker taka have pushed up vehicle prices, making cars less affordable and reducing demand.

It also claimed imports of reconditioned vehicles from Japan fell sharply in January and February this year, with Bangladesh importing fewer vehicles than Kenya, Sri Lanka and Tanzania.

Citing Bangladesh Road Transport Authority (BRTA) data, Barvida said vehicle registrations have declined steadily: from 21,952 in 2015 to 9,387 in 2025, reflecting a prolonged downturn in the sector.