To begin with, the motorcycle sector in Bangladesh is yet growing positively amid various inconveniences like traffic jams and the risk of road accidents. Hence, The govt. reduced bike registration fee to sustain this growth.
Meanwhile, the bike registration fee in Bangladesh is 22% of the price. In contrast, our neighboring countries take 5-8% as a fee. Not to mention, Excessive registration costs are hazardous for the progress of the sector. Additionally, putting investors in unequal competition.
In this regard, The Prime Minister’s Office (PMO) advised the Road Transport and Highways Division to reduce the bike registration fee below 10% in consultation with the Finance Ministry. On the other hand, Japanese investors at the Bangladesh-Japan Public-Private Joint Economic Dialogue (PPED), required a reduction in motorcycle registration fees.
At the moment, the registration cost of a motorcycle is about Tk22,000 on average including all the charges. In other words, 25 percent of the price of a 100cc motorcycle with the best-selling engine capacity. Therefore, the authority wants the fee at least Tk4,000.
“We have been asking the government to reduce the bike registration fee for some time. It would not be possible for buyers to bear the registration fee at the existing level. It would have a final impact on the manufacturers. Investment and employment in the sector may reduce in this potential sector.”
– Matiur Rahman (President of BMAMA and chairman of Uttara Motors)
Generally speaking, the motorcycle industry contributes around Tk2,000 crore as a duty, tax, and VAT directly every year. Besides, there is the opportunity for earning revenue of around Tk1,000 crore from registration fees. Motorcycle sales had leaped to about 5 lakh units in 2019 from 1.5 lakh in 2017 because of a cut in import duties.
Important to realize, the sector has investments ofTk8,000 crore which provides direct or indirect jobs to about two lakh people.