Sunday, 05 June 2011 Author / Source: Mashiur Rahaman
DHAKA, JUNE 4: Annual sale of brand-new cars in Bangladesh have witnessed a sharp rise, propped up by improved purchase capacity particularly among the middle-class. As many as 4,500 units of brand new cars have been sold in 2010 compared to 3,000 units in 2009, according to a data revealed by car importers.
The importers attributed the growth in demand mostly to the free of cost post-sale services while strongly denying allegation of tax-evasion raised by reconditioned vehicle importers.
According to a market size and distribution statistics compiled by car importers, out of an approximate annual 30,000 units demand of vehicles in Bangladesh, 27,000 units were in the reconditioned category in 2009. Reconditioned vehicle sales in 2010 declined to 25,500 units, while the market size remained almost the same.
“This reflects the improved sense of branded goods among the buyers, mostly due to its reliability and services. The customers are now going less for comparatively cheaper but unreliable products,” AKM Ghias Uddin, deputy general manager of Navana Limited said.
Navana is the sole distributor of Japanese Toyota brand in Bangladesh.
Out of 4,500 units of band-new cars imported in 2010, 2,025 units were of Mitsubishi brand, Toyota 945, Nissan 585 and 945 units of other brands, as per the yearly statistics.
Ghias claimed that business prospect of brand-new cars in Bangladesh is growing fast, driven by growing customer demands but he blamed importers of reconditioned vehicles for practicing unethical means of business.
“They are trying to manipulate the government facility of import tax-depreciation by falsifying documents and indulging in smear campaign against importers of brand new vehicle importers,” he said while talking to The Independent.
He said that reconditioned vehicle importers under the banner of BARVIDA (Bangladesh Reconditioned Vehicles Importers and Dealers Association) peruse National Revenue Board (NRB) and the finance minister every year prior to national budget and get unhealthy advantages. This year, they have come down heavily on the new-car importers, probably being jealous over their achievements, he added.
“BARVIDA has blamed brand-new vehicle importers for involvement in under-invoicing, thus depriving government of due revenue,” Ghias said.
This is completely illogical, he claimed explaining that new vehicles are imported and taxed under direct Manufacturer’s Price Certificate. It is impossible to manipulate, he added.
A delegation of BARVIDA visited the national revenue board and submitted a pre-budget proposal in last month, accusing new car importers for tax-evasion.
It is the importers of reconditioned vehicles who are largely involved in tax-evasion, taking advantage of general 35 per cent tax-depreciation for all 1-5 year old vehicles, said Ghias.
In the year 2009, total 27,000 reconditioned vehicles were imported while 22,950 units were from Toyota and 4,050 units from others.
Out of the total 3,000 units brand-new vehicles imported in 2009, total 780 units were of Mitsubishi, 630 units of Toyota, 540 units of Nissan and 1050 of other brands.
