Bangladesh Elevator, Escalator and Lift Importers Association on Wednesday urged the government to reclassify elevators and escalators as capital machinery and rationalise the existing duty structure, arguing that the current tax regime is driving up housing and infrastructure costs while threatening the sector’s sustainability.
At a press conference held at the Dhaka Reporters Unity, BEELIA president Md Shafiul Alam Uzzwal said elevators were no longer luxury products but essential equipment for modern urbanisation, industrialisation, high-rise construction and inclusive infrastructure development.
He said elevators were removed from the capital machinery category in 2023 and reclassified as commercial products, leading to successive increases in import duties in fiscal years 2024 and 2025.
According to him, the total tax burden on elevator imports has risen from about 11 per cent in FY2023 to nearly 46 per cent in FY2025, significantly increasing construction costs across the housing, industrial and infrastructure sectors.
‘Many elevator companies have been forced to scale down operations due to the rising costs, resulting in substantial job losses,’ Uzzwal said.
The association placed several recommendations before the government, including restoring elevators and escalators to the capital machinery category, reducing the load factor value from $3.00 per kilogram to $1.50 per kilogram, ensuring stricter monitoring to prevent misuse of imported raw materials under the guise of local manufacturing, and simplifying port-level valuation and customs clearance procedures.
BEELIA also called for reforms to the duty and tax structure to facilitate the import of internationally certified elevators and discourage the use of low-quality and reconditioned units, which it said pose serious safety risks.
Real Estate and Housing Association of Bangladesh president Ali Afzal said the high rates of customs duties, value-added tax and other taxes on elevator imports were adversely affecting both consumers and the housing sector.
He said excessive duties imposed in the name of protecting local industries had significantly increased the cost of installing internationally recognised elevator brands in high-rise buildings.
‘The additional costs are ultimately being transferred to apartment buyers through higher per-square-foot prices, making home ownership increasingly difficult for middle-income families,’ he said.
REHAB senior vice-president Abdur Razzaq stressed the need for government support for the elevator sector to facilitate planned urbanisation, smart city development and safe infrastructure expansion.
BEELIA general secretary Md Eadul Haque, adviser Emdad Ur Rahman, vice-president Asim Sarkar, director Mohammad Zakirul Haque and Chattogram representative Md Yusuf Nobi also spoke at the event.
The association’s leaders reiterated that excessive duties on elevators were increasing installation costs in multi-storey buildings and contributing to higher housing prices.
They also warned that the rising cost burden was encouraging the use of low-quality and reconditioned elevators, creating significant public safety concerns.
They expressed hope that the government would consider the sector’s demands and take necessary steps to support an industry they described as vital to the country’s housing, industrial and infrastructure development.
