Motorcycle industry once again demands registration payment cuts

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Motorcycle assemblers and makers have again demanded a decrease in registration charges in the ultimate budget in order that the industry can get over the monetary losses induced by the pandemic of COVID-19 and contribute extra to the GDP.

The government hasn't addressed their needs in the proposed price range, rather imposed yet another 10 % supplementary duty on registration of motorcycles.

The Bangladesh Motorcycle Assemblers and Makers Association (BMAMA) located their demands prior to the National Board of Earnings (NBR) on Monday.

Amid the ongoing economical crisis, the motorcycle market will experience a sharp fall popular by 30 to 40 % due to a substantial drop in purchasing ability of people, in line with the assessment of the system.

Mass persons will never be able to manage motorcycles and the suppliers will not be in a position to keep factories in addition to the sales network unaffected, finally leading to mass job cuts.

"Therefore, we wish to request an instantaneous reduced amount of registration fees, road taxes, supplementary duties and different charges on the average total of Tk 4,000 against per product of motorcycle," explained Matiur Rahman, president of the BMAMA.

Registration costs are actually on the average Tk 22,000, which is approximately 25 % of the price tag on a 100cc motorcycle, the engine capability that sells the virtually all, according to Rahman, as well the chairman of Uttara Motors.

Earlier, the BMAMA located the same requirements for reducing registration service fees and supplementary duty before the budget was put in parliament.

Rahman explained such initiatives would support improve the demand of motorcycles, allowing the sector to survive and preserve jobs.

However, the BMAMA valued the promulgation of the "Motorcycle Industry Development Policy 2018" which aims to raise the sector's contribution to the GDP from 0.5 to 2.5 % by 2025 and help the establishment of a world-class motorcycle sector in Bangladesh.

"For the ongoing monetary crisis due to COVID-19, we feel that the motorcycle market will deal with a sharp fall popular by 30-40 % due to a substantial drop in the getting power of individuals," Rahman apprehended.

The federal government imposed 10 % supplementary duty on total service fees in the FY2019-20 price range which increased the price tag on motorcycle registration process, according to Value Added Taxes and Supplementary Duty Action 2012.

Motorcycle product sales had leapt to about 5 lakh products in 2019 from 1.5 lakh in 2017 using duty reductions facilitated by the federal government at the import level.

The industry forecasted expansion of at least 20 % in FY2020, which includes now turn into a far cry because of the pandemic.

Annual motorcycle revenue were set to get around 6 lakh systems by the finish of 2019 because of price cuts, increasing getting potential and thrust for faster flexibility.

The market commenced to expand quickly from fiscal 2016-17, when the federal government slashed the supplementary duty by 25 percentage tips to 20 % on the import of the two-wheeler's pieces to inspire domestic manufacturing.

The great hopes are thought to have prompted marketplace players to get about Tk 8,000 crore, creating immediate and indirect employment for about two lakh people.

Rahman stated the motorcycle market contributed around Tk 2,000 crore as duty, tax, and VAT immediately every year. Besides, the federal government has the ability for earning additional earnings of around Tk 1,000 crore from registration fees.
Source: https://www.thedailystar.net

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