Supplementary duty on fees charged for services rendered by the Bangladesh Road Transport Authority for cars will increase from the existing 10 percent to 15 percent, according to the proposed budget for the upcoming fiscal year.
If the proposal is implemented, a buyer will have to pay more than Tk4,000 in addition to the amount he has to pay based on the current tax and fee structure during registration of a 1,500cc reconditioned sedan.
Meanwhile, The Finance Bill has outlined a way to increase annual tax for cars and sports utility vehicles (SUVs) by 50-67 percent, depending on the vehicle type and engine capacity.
If the two proposals are implemented together, the cost of buying and registering a 1,500cc reconditioned sedan would increase significantly as the final supplementary duty would be applicable on the increased annual tax – Tk25,000 instead of the current Tk15,000.
"This will discourage and hurt car owning families. A large number of them are desperate to use their own vehicles during the pandemic, despite the increased financial pressures," said Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association.
For larger engine cars, the cost hike would be much more as registration cost, annual tax and other expenses are higher for them.