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VAT in Motorcycle in Bangladesh

VAT in Motorcycle will increase or reduce in next Budget of Bangladesh

Motorcycle is a commonly used vehicle all over the world. Bangladesh is also not a exception from that. People of Bangladesh are very fond of riding bike and do their regular work by motorbikes. Moreover, the young generation nowadays love to ride motorbike. People from every level of the society rides motorbikes to fulfill their need. The office going guy, college student, university student, teacher, representatives of various companies are seen using bikes commonly. In Bangladesh the cost of Motorcycle is too much high. It’s because of the high percentage of the VAT on motorbikes. So many people can not afford the bikes they want. They have to be satisfied using the lower configuration bike than the bike they wanted. Whatever in the previous budget, market value of bikes of different companies got decreased. But it is a rumor that in the next budget (2017-18) the cost of motorcycle will go up.

2017-18 budget has not been announced yet. But there is a probability that, motorcycle’s cost is going to rise in the next budget of Bangladesh which will be announced in the parliament later. Along with some other materials such as revolver, Television, car tires, sugar, rickshaw, Jewelry, tea, butter, oil etc the cost of the Motorcycle will also be increased.
This is a very shocking news for the people of Bangladesh who love to ride bike or many other people who need to use bike for daily basis or the people who were thinking to buy bikes for themselves. It is a pity that, We the people of Bangladesh do not get the same conveniences as the people of India get.

When a guy in India goes to buy a Honda CBR150 R which is a 150cc bike, he has to pay only 1,32,513 rs. for the bike. In Bangladeshi taka the amount should be around 1,80,000 BDT. But a buyer has to pay a huge 4,50,000 BDT for a Honda CBR 150cc bike. The amount is unimaginable for any average Bangladeshi guy. There is some reason for the higher market value of the imported bikes in Bangladesh. In Bangladesh the Importers have to pay around 200% VAT on motorbikes. So, ultimately the market value gets increased.

In Bangladesh, almost 1,80,000 bikes gets sold every year. But the quantity should be higher than that. But there are some reasons behind the fact that, in Bangladesh you can’t just get to the street with your 250 cc bike and ride with fun. Because you are not permitted to ride a bike higher than 150 cc. Secondly, The higher amount of VAT. Due to this reason the importers or manufacturers increase the cost of the bikes and the market value gets out of the reach of the buyers. So the sell of bikes decreases. Another reason of lesser bike sell in Bangladesh is the roads and highways of Bangladesh. The highways of Bangladesh are not suitable for the higher cc bikes. The city roads are somehow standard for bike drive but the roads of the village areas or the towns are not any close to standard for bike ride. This things should be developed at first.

Whatever, There is a hope that by 2019 the cost of motorbikes in Bangladesh will decrease a lot. Because now Manufacturers have to import bike parts from foreign countries so the cost get increased, but by 2019 it is proposed that bike parts also will be manufactured in Bangladesh. As a result the market value should be decreased.

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