Bangladesh Automobiles Assemblers and Manufacturers Association (BAAMA) and Bangladesh Electric Mobility Association (BEMA) jointly organized a press conference yesterday at a city hotel in capital city Dhaka.
Abdul Matlub Ahmad the president of BAAMA and BEMA presided over the conference and demanded some proposal to improve the Electric Vehicle (EV) sector of Bangladesh.
The President said that the Hon'ble Finance Minister presented the budget for the financial year 2024-2025 in the Great National Assembly on 06/06/2024. Considering the current economic situation, we are hopeful that it will play an effective role in restoring the economic momentum.This year's budget theme is "Dream of Smart Bangladesh in the cycle of sustainable development".
The president of BAAMA said, we had hoped that the necessary support measures would be taken to develop the electric vehicle industry, one of the components of the smart transport system, but that was not reflected in the proposed budget.
In the upcoming 2024-2025 fiscal year supplementary budget, the annual plan for the development of the electric vehicle industry has been adopted, subject to investment, supplementary duty waiver on import of electric vehicles in CBU status for the next 2 years, minimum customs duty, and progressive manufacturing of electric vehicles similar to engine driven vehicles for the next 10 years. Proposes to fix tax structure and advance income tax waiver on payment of vehicle fitness and tax token every year along with advance income tax waiver on registration of new electric vehicles.
We propose to fix the lowest rate of import duty on lithium ion batteries used in electric vehicles and equipment used for setting up charging stations, he added.
According to Singapore Nanyang Technological University (NTU) research data, about thirteen and a half (13.5) million people died prematurely in the world between 1980-2020 due to air pollution from sources such as man-made gas emissions and fires.
The president of BEMA said, transport sector is ranked as the second largest carbon emitting sector, which is the third largest carbon emitting sector in Bangladesh. By the proper implementation of all necessary measures, the government will reduce the transport sector by 2030 to 3.39 metric tons unconditionally (3.39 MICO₂e) and conditionally (with foreign aid) 6.33 metric tons (3.39 MICO₂e) above the acceptable level (Business-as-Usual EV BAU). metric tons (6.33 MICO:e) committed to reduce carbon dioxide emissions.
According to the Mujib Climate Prosperity Plan 2030, a target has been set to convert 30% of the country's conventional vehicles to electric vehicles by 2030.
Neighboring country India 15% import duty conditional on investment on import of electric vehicles in CBU status, free insurance and registration including tax benefits up to Rs 1.5 lakh on loans taken for first time purchase of electric vehicles under section 80 EEB of the Income Tax Act, GST on all electric vehicles Offering benefits, incentives up to 40% on price.
Similarly, Europe, America, China have provided various direct and indirect incentives including tax exemptions to promote electric vehicles. registration and road tax, parking fee, toll, import tax waiver, low rate loan facility and cash benefits on the price.
The direct support of the National Board of Revenue, there has been an investment of about Tk 8000cr domestic and foreign in the motorcycle industry in the country and direct and indirect employment has been created for 2 lakh people. If the government policy support is provided for the development of electric vehicle industry, it will move towards production oriented industry by overcoming import dependence, he urged.
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