The government has proposed to cut import duty on reconditioned cars that are at least four years old by Tk 60,000 to Tk 1 lakh in the next fiscal.The import duty on two to three years old cars, however, will stay unchanged, while the import duty on one year to two years old cars will go up.
Finance Minister AMA Muhith in his budget speech on Thursday proposed 40 percent depreciation for three to four years old cars and 45 percent for four to five years old cars.
The finance minister said, “The exiting depreciation for one to five years old cars is 35 percent.”
He also proposed the year-based depreciation system saying, “This consolidated depreciation is not just as because under the system the tax incidence of an older car becomes higher than a newer car.” (Source: UNB)
