Advance tax on bus, truck, taxi to rise by up to 88%
These advance taxes are paid annually at the Bangladesh Road Transport Authority (BRTA)
Advance tax on commercial vehicles such as buses and trucks is set to rise by as much as 88%, which could lead to higher transportation costs, according to industry insiders.
Currently, advance tax on 13 types of commercially operated motor vehicles ranges from Tk4,000 to Tk37,500. According to sources in the finance ministry, the new rates could range from Tk7,000 to Tk50,000.
An official from the National Board of Revenue (NBR), speaking on condition of anonymity, confirmed this information to The Business Standard.
These advance taxes are paid annually at the Bangladesh Road Transport Authority (BRTA).
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Md Shahidul Islam, former vice president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), told The Business Standard, "The advance tax collected on these commercial vehicles acts almost like an indirect tax. If this tax increases, it will ultimately be passed on to goods or passenger fares."
"As a result, it will increase overall transport costs, and thus raise the prices of goods and other transport-related services. It will also contribute to increased passenger fares," he added.
The advance tax on buses with more than 52 seats may rise from Tk16,000 to Tk25,000. Buses with fewer than 52 seats could see an increase from Tk11,500 to Tk20,000. Air-conditioned buses might be taxed Tk50,000 instead of the current Tk37,500.
Double-decker buses and AC minibuses or coasters may see their tax go from Tk16,000 to Tk25,000. Non-AC minibuses or coasters could face a hike from Tk6,500 to Tk12,000.
Prime movers might be taxed Tk35,000, up from Tk24,000. Trucks, lorries and tank lorries with over 5-ton load capacity may see their tax jump from Tk16,000 to Tk30,000, marking an 87.5% increase.
Those with 1.5 to 5-ton capacity could see an increase from Tk9,500 to Tk15,000. Vehicles with under 1.5-ton load capacity might go from Tk4,000 to Tk7,000.
Additionally, pickup vans, human hauliers and three-wheelers could face a tax increase from Tk4,000 to Tk7,000. AC taxi cabs may see a hike from Tk11,500 to Tk15,000, and non-AC taxi cabs from Tk4,000 to Tk7,000.
