In last year's budget, the government levelled tax and duty on reconditioned and new car imports to discourage imports of used cars, blaming them prime producer of black smoke.

At a press conference yesterday in Dhaka, Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) President Abdul Mannan Chowdhury Khosru said the emission rate of new cars is high because they do not have in-built three-way catalytic converters, which reduce carbon monoxide emission.

Quoting a study, which was done under the auspices of World Bank, the importers said reconditioned cars are less polluter than new ones.

According to the study, the rate of carbon monoxide emission of most petrol and diesel-run new cars is nearly 8 per cent against the acceptable rate of 4.5 per cent, they said. But the study, jointly conducted by Air Quality Management Project of Environment and Forest Ministry and Society for Urban Environmental Protection, an NGO, reveals the emission rate of reconditioned cars is only 0.05 per cent, the BARVIDA leaders said.

BARVIDA president said the 'so-called' brand new cars are ordered to assemble with poor quality engines to keep price competitive.

He said cheap cars like Maruti-Suzuki and Tata Gati of India and Hyundai of South Korea are pouring into Bangladesh, taking advantage of reduced tax and duty structure for new car imports.

As the special rebate has been given to new taxicab import, some traders are raking in money out of the new tariff structure. The unscrupulous traders are importing low quality cars especially from India, which do not have catalytic converters.

"The new cars look good from outside but their insides are fragile as they are built with old model engines," he said.

He said the price of brand new cars should be much higher than what they are selling now. Local distributors can offer at this lower rate because these cars are not actually brand new, as the engines are old models.

He also said the motor show being held in Dhaka is not displaying some particular cars because of their high emission levels.

He said reconditioned cars are more environment-friendly than the 'so-called' new cars because Japanese companies build them for home use and it is mandatory to have three-way in-built catalytic converters for cars to ply on Japanese roads.

Most of Bangladesh's reconditioned cars come from Japan.

Being traditionally affluent, the Japanese tend to change model of cars so the reconditioned cars are so strong and there is little difference between new and old cars, BARVIDA president said.

Considering the economic condition of Bangladeshi buyers, reconditioned cars should be encouraged to keep foreign currency level stable, he said.

"We are yet to afford luxury cars. When the luxury accompanies pollution the government must rethink its decision," he said.

MAH Sharif, chairman of BARVIDA standing committee on budget, tax and tariff, also spoke at the function held at Hotel Purbani International.