DHAKA: Finance Minister AMA Muhith proposed to rationalize the duty and tax slabs and facility was given to new hybrid vehicles in a limited manner in the budget of fiscal year 2014-15.
It is proposed to unify the existing two slabs of 1,501 to 1,750 CC and 1,751 to 2,000 CC motor cars into one slab of 1,501 to 2,000 CC and fix 100 percent Supplementary Duty (SD) thereon while maintaining the other duties and taxes unchanged.
Likewise, the existing 250 percent SD applicable on motor cars falling between 2,001 to 2,750 CC is proposed to be reduced to 200 percent. The year-wise depreciation system shall continue.
However, earlier, there were six duty and tax slabs on motor vehicle but now the duty and tax slabs were classified in many.
The facility was given to 1500 to 2500 CC new hybrid vehicles should be limited. In the budget for fiscal year 2014-15, “I propose imposition of 60 percent SD on new hybrid cars from 1,500 to 2,500 CC. This will encourage importation of more quality and environment-friendly vehicles yielding more revenue,” he said.
CKD importation has been given special benefit to encourage progressive manufacturing. But in reality, very little has been done by the users of this facility for progressive manufacturing.
In view of this, the present 45 percent SD rates applicable to CKD motor jeeps having cylinder capacity above 2,000 CC is proposed to be increased to 60 percent.
Low rates of SD have encouraged significant increase in import of microbus and double cabin pickups which require some control.
In consideration of this, Muhith proposed to raise SD rates from 30 percent to 45 percent on microbuses of 1501 CC to 1,800 CC engine capacities, while 60 percent SD rates on 1,801 to 2,000 CC microbuses to remain unchanged.
A total of 30 percent SD is proposed on motor vehicles falling under HS code 8702.10.40 with seating capacity not exceeding 15 persons. Moreover, present 30 and 45 percent SD rates on double cabin pickup upto 1,500 CC and from 1501 to 2750 CC are proposed to be raised to 45 and 60 percent respectively.
BDST: 1810 HRS, JUN 05, 2014
