BEELIA demands elevators be reclassified as capital machinery, seeks withdrawal of increased taxes

The Bangladesh Elevator, Escalator and Lift Importers Association (BEELIA) has demanded that elevators be reclassified as capital machinery in the upcoming 2025–26 fiscal budget and that the recently increased duties and taxes on this product be withdrawn.

The association made this demand at a press conference held today (Wednesday, June 18) at the Dhaka Reporters Unity.

The event was addressed by BEELIA President Emdad Ur Rahman and General Secretary Md. Shafiul Alam Uzzwal, among other association leaders.

At the press conference, it was noted that until the 2021–22 fiscal year, elevators were imported under the category of capital machinery, which carries minimal import duties. However, from the 2022–23 fiscal year, the previous government suddenly reclassified elevators as commercial goods, resulting in significantly higher duties and taxes. In protest, BEELIA organized demonstrations, but their objections were not taken into consideration.

BEELIA leaders stated that the 2025–26 proposed budget continues to treat elevators as commercial goods. Moreover, the proposed budget further increases the duty and tax rates on these products. Therefore, the elevator sector is subject to a 15% import duty, 5% advance income tax (AIT), 5% advance tax (AT), and a newly imposed 15% VAT, totaling a combined duty of 43%. In the 2024–25 fiscal year, this total was 25.75%.

BEELIA President Emdad Ur Rahman pointed out that a significant time gap exists between the signing of contracts and the actual importation and production of elevators. As of June this year, more than a thousand elevators are in various stages of procurement: orders placed, letters of credit opened, under production, being shipped, or at customs clearance. These elevators were sold based on the previous duty rate of 25.75%. If the newly increased 43% duty is applied retroactively, the concerned businesses will face significant financial losses, and customers may not receive their ordered products. He strongly urged that these units be taxed under the previous fiscal policy.

BEELIA General Secretary Md. Shafiul Alam Uzzwal emphasized that elevators are a crucial component in the development of the country’s housing sector. The increased duties and taxes in the 2025–26 proposed budget will substantially raise elevator prices, causing considerable hardship for consumers. As a result, the overall growth of the housing sector could stagnate, negatively affecting both investors and thousands of workers associated with the industry. He called for the immediate withdrawal of the increased duties and for elevators to be reclassified as capital machinery before the proposed budget is finalized.

The press conference also highlighted the issue of overvaluation during the import stage, which results in higher duties and taxes. Based on weight, 65% of elevator components are made of iron and steel, 25% are concrete blocks, and the remaining 10% are electrical and electronic parts. The market price of iron and steel is below $1 per kilogram, while the price of concrete blocks is negligible. Nevertheless, the previous government had arbitrarily set the value of elevators at $3 per kilogram — a rate BEELIA insists must be reevaluated for accuracy.