Price will increase of assembled motorcycles

The import tax of secede motorcycle parts and materials are increased at the presented fiscal year 2017-18. Alongside that assemblers will face great difficulties if they didn’t accomplished the building process within the preset time. It is came to know that the price will also be increased of assembled motorcycles and for this reason those who runs this business, demand for the reduction of import tax on the secede motorcycles importing.

The owner organization of BMAMA, Bangladesh motorcycles assemble and manufacturers association said, proposed budget will decrease the development of this industries. Ministry of trade and commerce, NBR and BDR jointly approved two years TAX and VAT reduction at 2016. Within one year they changed the notification and started new put out. According to this new express for manufacturing elements of motorcycle taxes are changed part wise but at past it was fixed. Supplementary duty onto the Secede motorcycles is raised to 45% from 20%. Because of this reason the assemble bike price will be increased to TK 20000- TK25000. For taking this type of decision 90% buyers must pay extra money for having a bike. Bad impression will be created over those bikes which has a combined amount of TK650 crore. Bike selling will be reduced and lower level motorcycle market will be hampered.

Chief executive officer of TVS Auto MR Biplob Kumar said, government gave two year time for the production but enabled the process within six months. According to the agreement if the manufactures failed to produce bikes they have to give 25% import tax and 45% supplementary duty. New arrived investor will face great difficulties because of this decision. He also said, long time rules and regulations must be published for the sustainable development of motorcycle industries. Many of the companies started to think about manufacturing products along with increasing their market values. This type of decision of the government can ruined their business and the motorcycle market.