Government plan to cut depreciation facility may rise car price in Bangladesh
NewsDesk
Sat, 01 Sep 2018
Government plan to cut depreciation facility may rise car price in Bangladesh
NewsDesk
Sat, 01 Sep 2018
Government plan to cut depreciation facility may rise car price in Bangladesh
NewsDesk
Sat, 01 Sep 2018
Budget speech from finance minister Abul Maal Abdul Muhith is due on Thursday next and a range of changes in the duty structure for import and export is expected. The government may want to discourage import of reconditioned private vehicles and encourage more environment-friendly vehicles to curve the ever increasing traffic jams and air pollution. Existing duty structure permits importers to avail year-wise depreciation facility up to 40 per cent on reconditioned car imports. Officials from National Board of Revenue (NBR) recommended reduction of depreciation benefit on import of used cars for the fiscal year 2018-19.
The available depreciation facility rate depends upon the number of years the imported car in the case being in use. Cars used between one to two years are eligible for 15 percent depreciation whereas if a car is used for two to three years then it is eligible for 25 percent depreciation. Three to four years used cars get 35 percent depreciation and four to five years used cars can get maximum 40 percent depreciation facilities. This depreciation amount is deducted from the total value of an imported car first and then the payable duty is assessed based on the amount after deduction. This way reconditioned car prices become cheaper. Officials from finance ministry said that this may result in hike in car prices in the country if the recommendation comes into fruition.
The government may offer duty benefits to a range of other sectors like import of raw materials for local industries especially for computer, mobile, motorcycle etc. manufacturing industry as well as pharmaceuticals industry with the aim to stimulate manufacturing of quality electronic items such as computers, mobile phones, and motorcycles in the country.
Government plan to cut depreciation facility may rise car price in Bangladesh
Government plan to cut depreciation facility may rise car price in Bangladesh
NewsDesk
Sat, 01 Sep 2018
Budget speech from finance minister Abul Maal Abdul Muhith is due on Thursday next and a range of changes in the duty structure for import and export is expected. The government may want to discourage import of reconditioned private vehicles and encourage more environment-friendly vehicles to curve the ever increasing traffic jams and air pollution. Existing duty structure permits importers to avail year-wise depreciation facility up to 40 per cent on reconditioned car imports. Officials from National Board of Revenue (NBR) recommended reduction of depreciation benefit on import of used cars for the fiscal year 2018-19.
The available depreciation facility rate depends upon the number of years the imported car in the case being in use. Cars used between one to two years are eligible for 15 percent depreciation whereas if a car is used for two to three years then it is eligible for 25 percent depreciation. Three to four years used cars get 35 percent depreciation and four to five years used cars can get maximum 40 percent depreciation facilities. This depreciation amount is deducted from the total value of an imported car first and then the payable duty is assessed based on the amount after deduction. This way reconditioned car prices become cheaper. Officials from finance ministry said that this may result in hike in car prices in the country if the recommendation comes into fruition.
The available depreciation facility rate depends upon the number of years the imported car in the case being in use. Cars used between one to two years are eligible for 15 percent depreciation whereas if a car is used for two to three years then it is eligible for 25 percent depreciation. Three to four years used cars get 35 percent depreciation and four to five years used cars can get maximum 40 percent depreciation facilities. This depreciation amount is deducted from the total value of an imported car first and then the payable duty is assessed based on the amount after deduction. This way reconditioned car prices become cheaper. Officials from finance ministry said that this may result in hike in car prices in the country if the recommendation comes into fruition.
The government may offer duty benefits to a range of other sectors like import of raw materials for local industries especially for computer, mobile, motorcycle etc. manufacturing industry as well as pharmaceuticals industry with the aim to stimulate manufacturing of quality electronic items such as computers, mobile phones, and motorcycles in the country.
Budget speech from finance minister Abul Maal Abdul Muhith is due on Thursday next and a range of changes in the duty structure for import and export is expected. The government may want to discourage import of reconditioned private vehicles and encourage more environment-friendly vehicles to curve the ever increasing traffic jams and air pollution. Existing duty structure permits importers to avail year-wise depreciation facility up to 40 per cent on reconditioned car imports. Officials from National Board of Revenue (NBR) recommended reduction of depreciation benefit on import of used cars for the fiscal year 2018-19.
The available depreciation facility rate depends upon the number of years the imported car in the case being in use. Cars used between one to two years are eligible for 15 percent depreciation whereas if a car is used for two to three years then it is eligible for 25 percent depreciation. Three to four years used cars get 35 percent depreciation and four to five years used cars can get maximum 40 percent depreciation facilities. This depreciation amount is deducted from the total value of an imported car first and then the payable duty is assessed based on the amount after deduction. This way reconditioned car prices become cheaper. Officials from finance ministry said that this may result in hike in car prices in the country if the recommendation comes into fruition.
The available depreciation facility rate depends upon the number of years the imported car in the case being in use. Cars used between one to two years are eligible for 15 percent depreciation whereas if a car is used for two to three years then it is eligible for 25 percent depreciation. Three to four years used cars get 35 percent depreciation and four to five years used cars can get maximum 40 percent depreciation facilities. This depreciation amount is deducted from the total value of an imported car first and then the payable duty is assessed based on the amount after deduction. This way reconditioned car prices become cheaper. Officials from finance ministry said that this may result in hike in car prices in the country if the recommendation comes into fruition.
The government may offer duty benefits to a range of other sectors like import of raw materials for local industries especially for computer, mobile, motorcycle etc. manufacturing industry as well as pharmaceuticals industry with the aim to stimulate manufacturing of quality electronic items such as computers, mobile phones, and motorcycles in the country.