Bangladesh VT Players Alarmed by Proposed Elevator Import Duty

Members of the Bangladesh Elevators, Escalators and Lift Importers Association (BEELIA) recently expressed alarm over the government’s proposal to remove capital machinery (CM) status from imported elevators, which would result in a 31% duty on the equipment and price increases of up to 25%, the Dhaka Tribune reports. Elevator importers now pay an 11% duty, along with other, negligible, customs and taxes. Observing that the Bangladesh housing industry is reliant on imported elevators for its mainly midrise buildings, BELLIA members say they fear a snowball effect if CM status is removed, with elevator service charges, as well as the construction costs, going up, and, in turn, the cost of residential and office space. According to BEELIA and the National Board of Revenue, importers bring up to 5,000 lifts to Bangladesh each year, and local manufacturers “hardly meet 5% of demand.” If duties are imposed, BELLIA says, the 10-15% growth the sector has experienced over the past decade will be difficult to maintain.