Importers propose increasing the depreciation facility for reconditioned vehicles to 50% from the current 35% for FY25. The proposal aims to counter the impact of the strong dollar. Currently, vehicles receive depreciation ranging from 10% to 35%, depending on their age. Higher depreciation reduces import prices. Importers emphasize the necessity of this increase due to the significant devaluation of the taka against the dollar. They highlight rising import costs, stating examples of increased prices for cars. The proposal aims to maintain revenue targets while allowing middle-class consumers to afford vehicles. Additionally, they suggest measures like cubic capacity-based duty, reconstruction of slabs for hybrid cars, and tax reductions for SUVs and electric vehicles to stabilize the market.
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