The Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) has warned that proposed changes in the FY2026–27 budget could push up prices of popular reconditioned cars, including Toyota Axio by Tk2.5 lakh and Toyota Premio by over Tk3 lakh if revised duty structures are implemented.
At a press conference in Dhaka on Saturday, Barvida said higher tax incidence and a revised engine capacity structure would raise import costs and lift prices in the mass-market segment.
Barvida President Abdul Haque said engine capacity slabs for fossil fuel vehicles have been restructured from 1–1500cc to 1–1200cc and 1201–1600cc. Along with higher total tax incidence (TTI), it would significantly increase landed costs.
The association said TTI has been proposed to rise from 132.36 per cent to 159.80 per cent, which would be passed on to consumers.
It estimated Toyota Premio prices could rise by around Tk3 lakh or more and Toyota Axio by about Tk2.5 lakh, reducing affordability for middle-income buyers.
Barvida urged the government not to increase duties on reconditioned vehicles, warning of further demand erosion amid weak consumption, currency depreciation and high import costs.
The association said the auto market has contracted sharply since August 2024 as weaker purchasing power has reduced vehicle ownership.
It added that although foreign exchange pressure has eased, taka depreciation continues to keep import costs high, limiting both imports and sales.
Barvida flagged a policy imbalance between reconditioned vehicles and new hybrids, noting reduced duties on plug-in hybrid vehicles up to 2000cc and withdrawal of regulatory duty on new vehicles up to 1800cc.
In contrast, reconditioned vehicles still face a 5 per cent regulatory duty. The association called for duty alignment across categories.
It urged policymakers to reconsider the proposed structure to avoid further pressure on the sector and safeguard revenue.
