The country's motorcycle industry has sought financial assistance and policy support from the government to pay salaries and wages for three months, according to a press statement.
Bangladesh Motorcycle Assemblers & Manufacturers Association (BMAMA) and Motorcycle Manufacturers & Exporters Association of Bangladesh (MMEAB) sent letters to the authorities concerned on Sunday, seeking support from the government to overcome the crisis caused by coronavirus pandemic.
They sought Tk 20 billion as working capital at 4 per cent interest rate and Tk 600 million at 2 per cent service charge.
The associations said the onslaught of Covid-19 and consequent general holidays declared by the government have befallen the industry during high business season of the year.
"Immediate loss from expected sales stands at around Tk 6 billion during one-month closure consequent upon closure on general holidays," the letter reads.
The letter said the market will not recover by next two to three years; and to come back with full swing, even like that of the last year, motorcycle industry will have to absorb a loss on expected sales amounting to more than Tk 200 billion.
The industry urged the government for the quick return positive VAT balance on their current account to meet their needs.
The associations also made request for immediate refund of positive balances of advance tax (AT) to provide immediate working capital support.
"We also request necessary modification of re-fixing the time span to 3 months from 6 months instead," the letter said adding that a request to allow waiver for AT for next 6 months for supporting working capital need.
The industry also made request to refund advance income tax amount after adjustments of the corporate tax in order to support their working capital.
The industry sought an immediate reduction of registration fees, road tax, supplementary duties and other charges in line with international standards that on an average, totals around Tk 40 billion and such initiative will add to increase the demand of motorcycle enabling the industry to survive and sustain its employment.
The motorcycle makers also sought extension of the waiver aligned with the ongoing general holidays along with a minimum of extra 2 months (60 days) for all ports (Chattogram, ICT, Dhaka Airport, Mongla, Pangaon, Benapole and other land, sea, and air ports) as it will not be possible to release all containers altogether.
Chattogram port authority announced 100 per cent waiver of port charges up to April 25, 2020 applicable only to containers released during holidays.
Mr. Himihiko Katsuki, Managing Director and CEO, Bangladesh Honda Private Limited, said a motorcycle can help people to travel with very good social distance, however, under the current price level, it is difficult for the mass population to afford it.
"All manufacturers are giving their best efforts to reduce the motorcycle prices by manufacturing locally however, registration cost including road tax and other charges are almost four times higher than that of the neighboring countries and it keeps the total price that consumer has to pay high," he was quoted as saying.
"Immediate registration fees including road tax and other charges reduction will not only help people maintain social distancing while commuting, but also it will protect the industry as well as government revenue in the long run," he added.
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