Association seeks withdrawal of additional tax burden on reconditioned vehicles
BARVIDA Calls for Balanced Auto Tax Policy
BARVIDA has urged the government to revise the proposed FY2026-27 budget by reducing additional tax burdens on mid-range reconditioned vehicles and extending equal duty benefits to plug-in hybrid models.
The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has called for the withdrawal of additional tax burdens proposed on mid-range fossil-fuel-powered reconditioned vehicles in the FY2026-27 national budget.
The association also demanded equal duty treatment for both brand-new and reconditioned plug-in hybrid vehicles and urged policy support for hybrid technology.
The demands were presented at a press conference held at Dhaka Club on Saturday by BARVIDA President Abdul Haque.
According to BARVIDA, while the government is encouraging electric vehicle adoption through tax incentives, charging infrastructure across the country remains limited. In contrast, support infrastructure for hybrid vehicles has already developed significantly, making hybrid technology a practical transitional solution.
The association stated that the reconditioned vehicle industry currently holds around BDT 20,000 crore in local investment and contributes nearly BDT 6,000 crore in annual revenue while supporting substantial employment.
BARVIDA argued that the proposed budget introduces new engine-capacity slabs of 1–1200cc and 1201–1600cc, replacing the previous 1–1500cc category, potentially increasing total tax incidence from 132.36 percent to 159.80 percent on popular fuel-efficient models.
According to the association, the proposed structure could significantly raise vehicle prices in the mid-range segment and affect affordability, investment, and overall revenue generation.
BARVIDA also highlighted that although duty incentives are available for brand-new plug-in hybrid vehicles, reconditioned plug-in hybrids continue to face a 5 percent regulatory duty.
The association proposed aligning supplementary and regulatory duties for both categories and extending similar incentives to microbuses.
It further recommended setting supplementary duty at 30 percent for 2001–2025cc plug-in hybrid vehicles and extending supportive policies to conventional hybrid models.
BARVIDA emphasized that a predictable and balanced tax framework would help ensure sustainable growth and competitiveness in the country’s automobile sector.
//DBITECH/DP/EK//
