How Much Tax to Pay for a Car in Bangladesh

In Bangladesh, the tax you need to pay for a car depends on various factors, including the car's engine capacity (measured in cubic centimeters or cc), whether the car is new or reconditioned, and other associated fees such as registration, supplementary duty, and yearly renewal. Here’s a breakdown of the common taxes and fees:

1. Import Duty

If you are importing a car, import duty is one of the major costs. The duty varies depending on the engine capacity and whether the vehicle is new or reconditioned. Generally, import duties include:

• > Customs Duty: 25% to 45% depending on engine capacity.
• > Supplementary Duty: Varies from 30% to 500%, depending on the car’s engine capacity. Vehicles with higher engine capacities (e.g., above 1500 cc) attract higher rates.
• > Value Added Tax (VAT): 15%.
• > Advance Trade VAT (ATV): 5%.
• > Advance Income Tax (AIT): Usually 5%.

The overall cost of importing a car may reach 120-400% of the car's original value depending on the specifications.

2. Registration Tax

When registering a car in Bangladesh, you need to pay a registration fee to the Bangladesh Road Transport Authority (BRTA). The fee varies based on engine capacity and car type:

• > Registration Fee: The registration fee varies from approximately BDT 15,000 to BDT 200,000 or more, depending on the car's engine size (e.g., below 1500 cc, 1500-2000 cc, etc.).
• > Advanced Income Tax (AIT) on Registration: The AIT amount varies with the car's engine capacity, with higher engine capacity cars requiring higher AIT. This typically ranges from BDT 15,000 to BDT 300,000 or more.

3. Annual Tax Token Fee

After registering a car, owners must pay an annual "Tax Token" fee to legally keep the vehicle on the road. This amount also depends on the engine capacity:

• > For Private Cars: The tax token fee can range from BDT 15,000 to BDT 70,000 or more per year based on the car’s engine capacity.
• > Road Permit Fee: There is also an additional fee for obtaining or renewing the road permit, which varies.

4. Fitness Certificate Fee

All cars must pass a fitness test to ensure roadworthiness, especially after a certain age (usually two years for new cars):

• > Fitness Certificate Fee: Typically around BDT 450 to BDT 2,000, depending on the car type and engine capacity.
• > Renewal Frequency: Every year for older cars.

Example of Costs

For a typical car with an engine capacity of 1500 cc:

• > Import Duty: 200% to 300% of the car's value.
• > Registration Cost: BDT 50,000 to BDT 100,000.
• > Annual Tax Token Fee: BDT 25,000 to BDT 50,000.

These costs can vary depending on government regulations, changes in tax rates, and other policy adjustments. It’s always best to check with the BRTA or a trusted car dealership/importer for the most up-to-date and accurate information.