Bangladesh’s elevator and escalator importers have called on the government to restore elevators and escalators to the Capital Machinery category and overhaul the existing tax regime, warning that soaring duties are driving up housing costs, threatening jobs and undermining safe urban development.
Speaking at a press conference in Dhaka on Wednesday, Md Shafiul Alam Uzzwal, President of the Bangladesh Elevator, Escalator and Lift Importers Association (BEELIA), said elevators have become an indispensable component of modern urbanisation, high-rise construction, industrial expansion and inclusive infrastructure, and should no longer be treated as commercial luxury products.
He noted that elevators were removed from the Capital Machinery category in 2023 and subsequently reclassified as commercial goods. Since then, the sector has faced successive tax hikes, pushing the overall duty burden from around 11 per cent in FY2022-23 to nearly 46 per cent in FY2024-25.
“The sharp rise in duties has significantly increased construction costs, particularly in the housing sector, forcing many companies to scale back operations and resulting in job losses,” Uzzwal told the press conference held at the Dhaka Reporters Unity (DRU).
Backing the demand, Real Estate and Housing Association of Bangladesh (REHAB) President Dr Ali Afzal said excessive customs duties, VAT and other taxes on elevator imports are ultimately being passed on to consumers, placing additional pressure on the country's real estate industry.
BEELIA urged the government to adopt a series of policy measures, including restoring Capital Machinery status for elevators and escalators, reducing the load factor value from US$3.00 per kilogram to US$1.50 per kilogram, simplifying customs clearance procedures, tightening oversight to prevent misuse of imported raw materials and rationalising the duty structure to facilitate the import of internationally certified, high-quality elevators.
Dr Afzal warned that rising installation costs are inflating apartment prices and making home ownership increasingly unattainable for middle-income families.
REHAB Senior Vice-President Abdur Razzaq stressed that government support for the sector is essential to ensure planned urbanisation, smart city development and the expansion of safe and sustainable infrastructure.
Industry leaders also voiced concern that escalating costs are encouraging the use of cheaper, low-quality and reconditioned elevators, raising serious safety risks for users.
They urged policymakers to address the sector’s concerns in the upcoming fiscal measures, arguing that a more balanced duty structure would support construction activity, boost investment and contribute to safer and more efficient urban growth across Bangladesh.
