Elevator traders demand ‘capital equipment’ category restoration, VAT-duties withdrawal
They also demanded the withdrawal of additional customs duties and taxes imposed on elevators in the FY26 budget
Leaders of the Bangladesh Elevator, Escalator and Lift Importers' Association (BEELIA) have demanded restoration of the category "capital equipment" for elevators from the "commercial goods" in the proposed national budget for the fiscal 2025-26.
At a press briefing held at the Dhaka Reporters Unity today (18 June), they also demanded the withdrawal of additional customs duties and taxes imposed on elevators in the FY26 budget.
"If the newly imposed additional rate of duty and tax is to be paid, which is 43%, the relevant institutions will face huge financial losses. Considering the overall situation, we strongly demand that the duty and tax be levied as per the previous budget," said BEELIA President Emdad Ur Rahman.
Keep updated, follow The Business Standard's Google news channel
The association's General Secretary, Md Shafiul Alam Uzzawl, said elevators are one of the main tools in the development of the country's housing sector. The imposition of additional duties and taxes in the 2025-26 budget will increase the price of the product, and lead to huge losses for consumers.
"This will also slow down the development of the entire housing sector. At the same time, businessmen and thousands of workers involved in the sector will be affected.
"So, we demand that the additional duty and tax on elevators be withdrawn before the approval of the proposed budget and that it be considered as 'capital equipment' as before," he said.
BEELIA leaders said elevators were imported as capital equipment until the fiscal 2021-22. But, the previous government abruptly transferred elevators to the "commercial goods" category from the fiscal 2022-23, increasing its duty and tax to a greater extent, which was protested by the association.
Elevators continue to be categorised as "commercial goods" in the FY26 budget, and the tax rate on the product has been further increased.
The total customs duty on the elevator sector – including 15% import duty, 5% advance income tax, 5% advance tax and the newly imposed 15% VAT – reaches 43%, which was 25.75% in FY25, BEELIA leaders said.
