Bike Price May Increase Before EID!
There is a good chance that Bike Price May Increase before this upcoming EID. Every year, the Eid season is the season when Motorcycle companies in Bangladesh reduce their prices or give discounts. But, it seems like this upcoming EID is going to be a different scenario for some motorcycle companies
Every year, the annual budget makes a big impact on the motorcycle industry. Due to new rules and regulations and also new tax percentages on motorcycle imports, the price always moves around after the budget declaration. Last year the tax was a bit reduced on motorcycles, therefore many motorcycle companies had the chance to decrease the price on many of their motorcycles.
But, things have changed in the current budget of the 2019-2020 financial year. In this budget, The Government has decided to increase the import tax on many things, and also in motorcycles.
In the new terms and regulations, motorcycles coming into Bangladesh in the form of CBU and CKD will have higher import duty or tax percentage than the previous year. Meaning, the company will have to pay more tax on the bike while importing, and therefore they will have to sell it at a higher price.
The term CBU means Complete Built Up. In this condition, the bike is fully assembled from the factory and all it needs is just the unpacking and it is ready to go.
CKD is the sum-up of Completely Knocked Down. This means that the bike is imported in a state where it is fully opened up, and all the parts of the bike are separated in order to save up space and also transport costs. After importing, these bikes get assembled in an assembling factory and then the bike is completely ready to take on the road.
Both the CBU and the CKD import tax on motorcycles have been increased, and there are some rumors that some companies might increase the price of their motorcycles. Also there were announcement of increasing the registration fees of motorcycles in Bangladesh but still there hasn’t been any such movements.
EID season was always a season for celebration, especially for Bikers. Now, whether this rumor that Bike Price Will Increase Before EID comes true or not, that would be for the time to tell.