The Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) has called on the government to rationalise import duties in the upcoming national budget, with a focus on fuel-efficient vehicles and foreign-currency savings.
The association demanded duty cuts for hybrid and plug-in hybrid vehicles, saying that broader adoption would benefit both consumers and the government, especially amid the ongoing fuel shortage.
At a press conference at the association's office at Bijoy Nagar area in Dhaka today, Barvida also sought the withdrawal of supplementary duty (SD) on microbuses used in public transport, industry, and educational institutions.
Barvida President Abdul Haque said imports and sales of reconditioned vehicles have fallen sharply in recent years due to global economic pressures, currency depreciation and rising prices, even as demand remained steady.
According to the association, around 3 lakh people directly or indirectly employed in the sector now face uncertainty over their livelihoods.
Haque said the automobile market has slowed in real terms despite the country’s overall economic progress, and that declining vehicle sales point to weakening purchasing power and reduced government revenue.
He said the sector is seeking policy support in the upcoming budget to address these pressures.
Even though the duty on imported microbuses was reduced in the FY2021-22 national budget by recognising those as public transport, Barvida claimed prices of such vehicles are still very high due to the high supplementary duty.
According to them, microbuses are very important in small, medium and large industries for employee transport, student transport, tourism, personal use, airport transportation and as ambulances.
The association said that 90 percent to 95 percent of the microbuses used in the country are converted to compressed natural gas (CNG) and run in an environmentally friendly manner.
Claiming that potential buyers are being discouraged due to high prices, Barvida said that microbus sales are declining, and the government is also losing revenue. Therefore, they have demanded the withdrawal of supplementary duty on microbus imports.
The Barvida president also proposed raising the permissible age limit for imported reconditioned vehicles from five years to eight years.
According to the current import policy, cars, jeeps, and commercial vehicles can be imported up to 5 years old. Barvida has been demanding that this limit be increased to 8 years.
Haque cited a fall in Japanese production since the Covid period and rising global prices, saying the change would lower domestic prices and increase revenue from duties and value-added tax (VAT).
Haque described the reconditioned vehicle trade as operating in a competitive market without monopolistic control, contrasting it with the new-vehicle import market, where he said a small number of dealers dominate.
“Barvida has been importing reconditioned vehicles from Japan for over four decades,” he said.
On domestic manufacturing, the association said the market currently stands at 25,000-30,000 units a year. With growth in the middle-income population, it said, the market could reach 100,000 units, making local assembly viable.
Barvida said it supports vehicle assembly but cautioned against promoting inefficient practices under the banner of Complete Knock Down (CKD) imports.
Citing Bangladesh Road Transport Authority (BRTA) data, the association said vehicle registrations have fallen steadily. From 21,952 in 2015, the figure dropped to 10,784 in 2023, 10,499 in 2024 and 9,387 in 2025.
At the press conference, Barvida Secretary General Riaz Rahman, vice presidents Md Saiful Islam (Emarat), Habibur Rahman Khan and Farid Ahmed, Joint Secretary General Syed Ziaul Hossain, Treasurer Md Saiful Alam, Joint Treasurer Hafiz Al Asad, Organising Secretary Zobayer Rahman, Publication and Publicity Secretary Md Abdul Awal, and Planning and Development Secretary SM Mansurul Karim (Lincoln) were also present.
