Please lower bike registration fees
The motorcycle makers' association has demanded an 81 per cent cut in bike registration costs in next fiscal year's budget as the purchasing power of the general mass has seen a sharp fall because of the pandemic.
The registration cost of a motorcycle, including registration fees, road tax, supplementary duties and other charges, is about Tk 22,000 on an average, which is about 25 per cent of the price tag on a 100cc motorcycle, the best-selling engine capacity.
The association wants the cost to be fixed at Tk 4,000.
"The pandemic has taken much toll on the wages of customers. We didn't sell a single motorbike since the coronavirus outbreak," said Matiur Rahman, president of Bangladesh Motorcycle Assemblers and Manufacturers Association (BMAMA).
Previously, the sales figure used going to Tk 600 crore a month, he said in BMAMA's proposals for the national budget.
"Motorcycles not merely save time and money but also help persons travel by maintaining social distance," said Shah Muhammad Ashequr Rahman, head of finance and commercial at Bangladesh Honda.
So a cut in registration charges will encourage people to get motorcycles at the same time when they are fighting falling purchasing power and disposable income, he added.
Besides, the registration cost in Bangladesh is nearly four times a lot more than in the neighbouring countries, according to Himihiko Katsuki, managing director and chief executive officer of Bangladesh Honda.
If the registration service fees are not cut, persons will not be able to afford motorcycles and the manufacturers will not be in a position to maintain factories, that will in the end cause massive job cuts, said Rahman, also the chairman of Uttara Motors, the only real distributor of the Indian Bajaj brand's two-wheelers.
The motorcycle industry pays about Tk 2,000 crore yearly to the federal government exchequer in taxes and duties, of which about Tk 1,000 crore originates from registration fees.
In fiscal 2019-20, in line with the Value Added Tax and Supplementary Duty Act 2012, the federal government imposed 10 % supplementary duty on the registration fees, which increased the price tag on registration.
The demand for motorcycle could see a 40 % drop this year because of the ongoing monetary crisis due to the pandemic.
"That's why we would like to request an instantaneous reduction in registration fees, road tax, supplementary duties and other charges on every new motorcycle with regard to our survival," Rahman added.
Meanwhile, the association appreciated the promulgation of the 'Motorcycle Industry Development Policy 2018' that aims to improve the sector's contribution towards GDP from 0.5 to 2.5 % by 2025 and facilitate the establishment of a world-class motorcycle industry in Bangladesh.
It has elevated the industry to a better position than previously.
Motorcycle sales had leapt to about 5 lakh units in 2019 from 1.5 lakh in 2017 because of a cut in import duties.
The industry forecasted a rise of at least 20 per cent in fiscal 2019-20, which looks like a far cry now, he said.
At the moment, some 10 brands of motorcycles are created or assembled in Bangladesh, namely Runner, Hero, Bajaj, Honda, TVS, Yamaha, Suzuki, Benelli, Zongshen and Lifan.
About Tk 8,000 crore has up to now been invested in the sector, which gives direct or indirect jobs to about two lakh people, according to Rahman.
Every brand is wanting their best to lower the motorcycle prices by manufacturing the bikes locally, Katsuki said.
