Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) has urged the government to allow the import of up to eight-year-old reconditioned cars, saying the move would cut prices and ease pressure on foreign currency.
The demand came at a press conference in the capital on Saturday, where the association defended its proposals for the FY27 national budget.
The association said the current five-year import age limit is restricting supply and pushing car prices beyond the reach of middle-income buyers.
It added that currency depreciation, rising import costs and high taxes are making vehicles increasingly unaffordable for the class.
As well, importing older models can deplete less foreign currency.
Barvida argued that developed countries follow emission standards instead of model years to measure the effect on the environment.
Developed countries like the United Kingdom, Australia, and Canada do not have a model year limit for the importation of reconditioned cars.
“As Japanese reconditioned vehicles have a lifetime of around 25-30 years, I believe older Japanese cars can provide services at a good pricing point,” Abdul Haque told Times of Bangladesh.
Five and eight-year-olds do not matter a lot in emission terms, but the sought flexibility can save a huge sum in foreign currency, he added
The association sought tax cuts on hybrid and plug-in hybrid vehicles up to 1800cc and removal of supplementary duty on microbuses used in public transport and industrial operations.
Around 90 to 95 per cent of microbuses and pickups run on CNG or LPG, according to the association.
It asked the National Board of Revenue to resolve VAT complications at both import and sales stages, arguing that simpler taxes would expand the market and increase revenue.
Taxes and duties on reconditioned vehicles now range between 129 per cent and 826 per cent, BARVIDA said, proposing a specific duty system to improve transparency.
“A coordinated motor vehicle development policy is needed instead of isolated steps,” said BARVIDA President Abdul Haque.
He added that the sector ensures affordable mobility and supports several hundred thousand jobs.
The association also urged setting minimum tax rates for high-quality Japanese pickups to support entrepreneurs.
It warned against partial CKD assembly operations and raised concerns over customs valuation gaps between new and reconditioned vehicles.
Barvida said Bangladesh needs at least 1,00,000 vehicles annually to justify local manufacturing, while the current market stands at 25,000 to 30,000 units.
Japanese domestic models remain popular for safety, durability, fuel efficiency and resale value, it said.
Welcoming the Electric Vehicle Industry Development Policy 2025, BARVIDA said infrastructure must be ready before large-scale EV adoption.
Barvida also said the sector contributes nearly Tk6,000 crore annually to government revenue.
