Reconditioned car importers on Sunday demanded Tk 5.0 billion loan facility from the government’s stimulus package for taxation of imported used cars that have been siting idle at the seaports.
They also urged the government to completely waive the storage rent on the imported cars at Chattogram and Mongla seaports for the months of April and May.
The demands were made at an online press conference hosted by Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) from its office in the capital.
Presided over by BARVIDA president Abdul Haque, the programme was also joined by its vice-presidents SM Anwar Sadat and Saiful Islam, and secretary general Mohammad Shahidul Islam from different locations via video conferencing.
Mr Haque said, “If the government provides the car importers the desired loan of Tk 5.0 billion, they will be able to return Tk 15 billion in taxes through discharging imported cars from ports and selling it to customers.”
However, he said due to different perimeters to get loans from banks, reconditioned car importers are currently not eligible to receive loans from the government’s stimulus package.
Besides, BARVIDA also urged the authorities concerned for suspending auction of undischarged vehicles from the ports till December this year.
BARVIDA also urged the Shipping Ministry, for waiving the rent fees on release of the imported vehicles as the port was close for two months.
“There are some previous instances that the government had waived the port rent fees and taxes on release of vehicles during any crisis”, BARVIDA said.
The BARVIDA leaders alleged that the members of this important association have not been receiving any financial supports from the Government announced bailout packages worth Tk 20,000 Crore and Tk 30,000 Crore.
They also alleged that in some cases, the duty on import of reconditioned vehicles is almost double compared to those of new cars because of discrimination in customs valuation of cars.
As a result, the import of reconditioned cars declined a lot due to less demand from the customers and the businessmen in this sector have been facing a lot of financial losses over the last few years. This trend also impacted badly on the revenue collection by the Government from this sector.
“More than 4,000 units of cars are on display in more than 200 different showrooms of the BARVIDA members in Dhaka and Chattogram waiting to be sold. Moreover, nearly 8,000 units of cars are stucked in the yards of Mongla and Chattogram ports, imported by the BARVIDA members”, they said.
Although the business activities have been stopped entirely, still, the vehicle traders have to pay the showroom and office rents, salaries to the employees. As a result, the businessmen in this sector have lost Tk 300 Crore, leaders claimed.
BARVIDA Secretary General Mohammed Shahidul Islam, Vice Presidents S M Anwar Sadat, Mohd.Saiful Islam Samrat & Md. Jasim Uddin Mintu and other executive members of the association also attended at the virtual press conference.