The government had previously declared that all imported vehicles with engines smaller than 2,500cc would no longer be subject to customs and taxes. Only some imported autos’ customs tax would imply this restriction.
To encourage more car imports, all other main taxes have been removed. This government directive will result in significantly lower costs for the welding, repairs, and painting necessary to maintain car bodies.
As these taxes are eliminated, the overall cost of bodily maintenance will drop to 40%. As a result, the cost of maintaining a personal vehicle will be far more affordable than before. But despite this change, there are still lots of issues.
This is merely a reduction in maintenance costs, and it is anticipated that importing a fully loaded gasoline or hybrid vehicle will yield benefits ranging from 85% to 125%. For automobiles with higher values, the value might even be higher.
The Bangladeshi government has undertaken a number of steps to encourage the importation of high-quality vehicles. Also gaining from this government announcement are daily commuters. Imported vehicle purchases and maintenance are now considerably more feasible than they were in the past.
To assure the expansion of the automotive industry, additional production facilities may be built in the nation. But modernising Bangladesh’s automobile market and manufacturing industry may be extremely difficult given the rising cost of fuel.
The Bangladesh Auto Industries Management Director claims that if the price of typical automobiles could be sufficiently decreased so that middle-class people could buy them, there may be a significant increase in the production of car units. The annual output of vehicles is anticipated to expand tenfold if that can be done by addressing the obstacles facing the Bangladesh Automobile Market.
About 17k cars are currently produced annually for the Bangladeshi market. However, if government initiatives were to help the industries, production would increase from 17,000 to 100,000 cars annually, which is ten times more than it is now. These new government laws and initiatives are a significant milestone for Bangladesh’s automobile industry. greater vehicle production will result in greater sales, boosting the nation’s GDP as a whole.
Currently, the automobile industry makes up between 8 and 10 percent of the total GDP. Due to the expansion of the auto industry, this percentage will roughly double or even treble to between 25 and 30 percent.
The high demand for automobiles will also entice foreign investors and dealers to set up shop in Bangladesh, which will lead to the construction of additional factories and manufacturing facilities.
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