Loading...
The Financial Express

Motorbike makers for conducive policy support

| Updated: June 19, 2020 14:08:37


Motorbike makers for conducive policy support

Motorcycle Manufacturers and Exporters Association of Bangladesh (MMEAB) reiterated its demand to the government to continue its supportive policies for the development of the industry and its backward linkages.

“Our association has written a letter to the Tariff Commission to protect our local industry,” Hafizur Rahman Khan, president of MMEAB, and also the chairman of Runner, said in a statement.

 " We are surprised to see that the government did not extend its support for the motorcycle industry this year. In contrast, it did for many other local industries such as electronics and electrical appliances."

If the VAT on manufacturers takes place it would increase unit price by Tk10,000-15,000 for commuter bikes, while it is high time to reduce prices so that people can avoid the coronavirus infection risk in public transportation, said Khan.

He also called for not increasing the supplementary duty from 10 to 15 per cent on the registration cost which is already as high as one-fourth of a 100cc motorcycle.

"We understand the government's need for revenue. But it appears that total revenue collection would be very higher if the government supports the industry and enables citizens to avail a motorcycle or scooter," the MMEAB statement added.

"The most significant effect of the adverse policy emerging in the tough time, I want to say, is discouraging the industry to invest more in line with the national plan for a demand for 10 lakh units a year, higher employment generation and GDP contribution within the next five-seven years," it said.

Industry insiders said, along with a conducive policy support, Bangladeshi customers deserve much easier access to finance while buying a two-wheeler.

The process to avail a motorcycle loan in Bangladesh is too cumbersome and costly too, compared to that in the peer economies.

-rmc/

Square-Toiletries-Ltd-and-the-financial-express
Square-Toiletries-Ltd-and-the-financial-express
Square-Toiletries-Ltd-and-the-financial-express
Square-Toiletries-Ltd-and-the-financial-express

Share if you like