The government has prepared the draft of a national policy for the motorcycle industry with a target to produce 1.0 million motorcycles and create 1.5 million jobs in the country by 2027, officials said.
"A draft policy styled national motorcycle industry development policy-2017' has been formulated. It has already been sent to the authorities concerned for taking their opinions," a senior official of the ministry of industries told the FE on Thursday.
The country needs a comprehensive policy for facilitating the growth of the motorbike industry. It will be finalised shortly, he added.
According to the policy, both the producers and local sellers of motorbikes will enjoy reduced tax rate facility. Less than 1.0 per cent of duty will be imposed on import of raw materials that will be used for production of spare parts of motorbikes.
Domestic parts producers of motorcycles will be provided with special incentives. Bike producers will have to take necessary certificates from Bangladesh Road Transport Authority (BRTA) for locally-produced motorcycles before marketing, the policy motioned.
Duty drawback and bonded warehouse facilities will be provided to exporters and importers respectively. Registration cost, registration, examination process and etc will be easier and befitting, according to the policy.
After commercial production of motorcycles, entrepreneurs will get various facilities for at least five years.
A powered-committee headed by the industries minister will be formed to implement the policy.
The motorcycles' contribution to the country's gross domestic product (GDP) is now 0.5 per cent. It will be raised to 2.5 per cent by 2027, the draft policy reads.
Besides, motorcycle industry-friendly tax policy and required steps will be taken to attract local and foreign investments.
There is a provision in the existing policy that the manufacturers will have to set up all kinds of machinery before producing the two-wheeler, but it is not possible for a single manufacturer to produce such machinery.
Entrepreneurs of the bike assembling and manufacturing sector can implement their manufacturing plan through various vendors to produce different machinery.
Nowadays, motorbike has become first choice for many office-goers and professionals in the country because of its size and affordable price.
Apart from fulfilling individual transport needs, the two-wheeler has commercial value in the country's many areas. Thousands of unemployed rural people, mostly youths, use motorcycles as their main source of earnings. They commercially carry passengers on narrow roads from one town or village to another. But adequate road shortage stands in the way of using the vehicle, industry people and users said.
