Beelia demands reversal of elevator duty hike in proposed budget
The Bangladesh Elevator, Escalator, and Lift Importers Association (BEELIA) has called for the immediate reclassification of elevators as capital machinery and the withdrawal of newly imposed duties and taxes in the proposed 2025–26 national budget.
At a press conference held on Wednesday, 18 June, at Dhaka Reporters Unity, BEELIA President Emdad Ur Rahman and General Secretary Md Shafiul Alam Uzzwal presented the association's demands, warning that the current fiscal measures could severely impact the housing sector and related industries.
BEELIA pointed out that until FY2021–22, elevators were classified as capital machinery, attracting minimal import duties. However, from FY2022–23, elevators were reclassified as commercial goods, leading to higher tariffs. The association said that despite protests, the policy change remained unaddressed.
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According to the proposed 2025–26 budget, elevators now face a combined duty burden of 43%, including 15% import duty, 5% advance income tax (AIT), 5% advance tax (AT), and a newly imposed 15% VAT. In comparison, the total duty in FY2024–25 stood at 25.75%.
BEELIA President Emdad Ur Rahman warned that the retroactive application of the new rates would cause significant financial losses. He noted that over a thousand elevator units—ordered, under production, or en route—were sold based on the previous duty rate. Imposing the new 43% rate on these consignments would result in a pricing crisis, jeopardising delivery commitments and burdening importers and customers alike.
General Secretary Md Shafiul Alam Uzzwal emphasised that elevators are crucial to the country's expanding housing and infrastructure sectors. He said the increased cost would inevitably be passed on to end-users, slowing the growth of the housing sector and affecting thousands of workers who depend on the industry.
BEELIA also raised concerns over import-stage overvaluation. They argued that the government-assigned value of $3 per kilogram for elevators is arbitrary and misrepresents the actual component composition—65% iron and steel, 25% concrete blocks, and 10% electrical parts—leading to inflated tax burdens. The association urged immediate revision of this valuation.
The association called for an urgent reconsideration of policy to protect the industry, ensure fair pricing, and support the country's development goals.
