The Chittagong Chamber of Commerce and Industry (CCCI) has called on the government to review higher advance income tax on trucks and covered vans, saying the increase would raise logistics costs and work against efforts to reduce the cost of doing business.
Speaking at a meeting with leaders of the Truck and Covered Van Owners Association on Sunday, CCCI President Mohammed Amirul Haque said the freight transport sector is integral to Bangladesh’s supply chain and that higher taxes would increase operating costs for businesses.
“The government is trying to contain inflation and lower the cost of doing business. Additional taxes on freight transport run counter to those objectives,” he said.
Haque said the sector plays a vital role in the country’s import and export trade, domestic commerce, employment and revenue generation, adding that the chamber would continue working with the authorities to address the industry’s legitimate concerns.
CCCI Senior Vice-President Md Amzad Hossain Chowdhury said maintaining stability in the transport sector is essential to keeping trade and industrial activity running smoothly, urging all stakeholders to work together to avoid disruptions.
Representatives of the transport owners’ association said freight operators transport import and export cargo, pharmaceutical raw materials, baby food and emergency relief supplies, making the sector an essential service to the economy.
They said advance income tax on trucks and covered vans had been fixed through statutory regulatory orders until 2019, but in recent years the National Board of Revenue has revised the rates through executive orders.
Under the current fiscal year’s tax schedule, advance income tax on trucks and 12-wheel vehicles has increased to Tk35,000 from Tk24,000. The tax on trucks and covered vans with a capacity above five tonnes has risen to Tk30,000 from Tk16,000.
Vehicles with a capacity above 1.5 tonnes now pay Tk15,000, up from Tk9,500, while those with a capacity of up to 1.5 tonnes face Tk7,500, compared with Tk4,000 previously.
The association urged the government to introduce a uniform advance income tax of Tk10,000 for all freight vehicles and reduce tax token fees by 50 per cent, arguing that goods transportation should be treated as a service sector with a more rational tax regime.
