Dhaka Times Report. Budget is coming. And with the budget, various discussions have started about increasing or decreasing the price of goods. However, the price of most things in the budget is always likely to increase. It is known that the price of old and reconditioned cars will come down before the budget.
The onslaught of Indian substandard new cars is no more. The prices of reconditioned cars will decrease in the next financial year. For this reason, the finance minister will announce a new policy to remove the tax disparity between old and new cars. It will have a maximum annual depreciation facility of 35 percent. Relevant responsible sources confirmed the matter and said that the recommendations of the Prime Minister's Office, Ministry of Commerce and Tariff Commission are being taken into consideration to remove the discrimination between new and old cars. In the current financial year, the Japanese government also expressed a negative reaction after the notification regarding the related tariff rates. The Trade Affairs Office of the Government of Japan sent a letter to the Prime Minister and Finance Minister through the Embassy of Japan objecting to the move by the Jetro government. After this, the Prime Minister's Economic Affairs Adviser wrote to the NBR Chairman and directed to eliminate the tariff price disparity. In a report by the Prime Minister's Office, the government's political image was also questioned as the import of Japanese reconditioned cars decreased and the import of Indian cars increased due to the tariff disparity between new and old cars.
According to sources, the annual depreciation allowance is being revised to eliminate the disparity in the taxation of old and new imported vehicles in the proposed budget for the fiscal year 2012-13. It includes zero percent vehicle age less than 1 year, more than 1 year but less than 2 years 10 percent, more than 2 years but less than 3 years 15 percent, more than 3 years but less than 4 years 25 percent and more than 4 years. But less than 5 years is being fixed at 35 percent. At present, all importable used cars, irrespective of age, get the same depreciation benefit ie 35 per cent. In this, one year old and 5 year old cars get the same depreciation benefit. As a result, both types of vehicles have to pay the same amount of duty and tax, which is against exchange value and equality. The government is losing a huge amount of revenue. There has been criticism that this facility was given to give special privileges to the import of cars from neighboring India.
NBR sources also said that in the light of the report and recommendations of the Tariff Commission, the Ministry of Commerce has also recommended to eliminate this disparity. In a letter written to the Chairman of NBR on May 14, the Joint Secretary (IIT) of the Ministry of Commerce said that the Commerce Minister has agreed with the recommendations of the Tariff Commission and ordered to send recommendations to the NBR with regard to the rationalization of the tolling system of new and old vehicles. The recommendations of the Tariff Commission and the Ministry of Commerce include, 'Used, old or reconditioned automobiles and vehicles imported from Japan should be subject to yearly old prices in the Yellow Book and, if imported from any country other than Japan, an up-to-date glass guide, automobile magazine or any such internationally recognized The updated value of the old vehicle concerned published in the journal and the declared value, whichever is higher, or the manufacturer's price certificate or invoice value for the new vehicle, whichever is higher, can be levied as duty on the new vehicle. The customs value of an old car can be determined by deducting the value of a new car of the same model.'
Sources related to NBR said that the new policy will be implemented in the next fiscal year's budget by considering the report of the Prime Minister's Office, the Tariff Commission and the recommendations of the Ministry of Commerce. NBR has agreed in principle on this matter but it will be implemented subject to some amendments. The depreciation benefit fixed so far may be further revised at the last stage. However, the annual depreciation benefit remains at a maximum of 25 percent. It will be finalized after taking the approval of the finance minister.
The news published in Dainik Yugantar also said that on May 8, a secret letter signed by the director of the Prime Minister's Office, Wahida Akhtar, was sent to the Finance Secretary. Mohammad Tarek, Commerce Secretary Golam Hossain and NBR Chairman Dr. To Nasir Uddin Ahmad. A report is attached to it and it is said that in the light of the recommendations of the confidential report, the Prime Minister's office has been requested to take effective measures to ensure that the image of the government is not damaged in any way.
At present, NBR has two notifications to determine the 'Duty Value' of new and old vehicles. As per SRO No. 298 there is a provision for acceptance of declared value in case of new vehicles. On the other hand, according to SRO No. 167, in case of importation of old motor vehicles from Japan, instead of the annual current market price published in the Yellow Book in Japan, the new car price is charged by determining the 'minimum price' with a depreciation of 35 percent regardless of the age limit of 1 to 3 years. Due to this, the same customs duty is standing for 1 to 5 years old motor vehicles. Although there is a provision for import of 5-year-old motor vehicles in the import policy order, complications have arisen due to the lack of clear instructions of the NBR in determining the customs value of 4- and 5-year-old motor vehicles. As a result, new cars are assessed at the declared price, resulting in higher duty-tax on old cars of the same price or same model.
Now the rest will be understood after the actual decision of the government in the budget. But people also want Japanese used and reconditioned cars to be brought within the reach of the masses by lowering the import duty.
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