The upcoming budget is set to make electric vehicles (EVs) and charging infrastructure more affordable while extending long-term tax incentives for solar energy, in a move aimed at accelerating Bangladesh’s transition towards cleaner energy and reducing dependence on fossil fuel imports.
Under the proposals, import duties on completely built-up EVs will be reduced from an effective rate of around 93 per cent through a tiered structure based on vehicle value. Imported EVs priced up to $25,000 will face a 64 per cent duty, while those priced up to $50,000 will be taxed at 80 per cent.
At the same time, regulatory duty on imports of new hybrid vehicles with engine capacity up to 1,800cc will be withdrawn, lowering entry barriers for fuel-efficient vehicles.
Import duty on tugboats will also be reduced from 10 per cent to 5 per cent.
Electric mobility taxation under the Bangladesh Road Transport Authority (BRTA) will be restructured. The existing flat Tk2 lakh advance income tax (AIT) for EV registration and renewal will be replaced with a capacity-based slab system — Tk25,000 for up to 200 kilowatts, Tk50,000 for up to 300 kilowatts, Tk75,000 for up to 400 kilowatts and Tk1 lakh for vehicles above 400 kilowatts.
In renewable energy, the solar power sector will continue to enjoy a zero per cent tax regime until 2035, providing long-term policy certainty for investors and developers. A 5 per cent tax rebate on electricity bill payments for solar users will also be introduced to encourage rooftop and distributed solar adoption.
The budget also proposes zero duty on imports of EV charging stations, electric buses and electric trucks, aimed at strengthening the supporting infrastructure for electric mobility.
Officials said the combined measures are intended to expand clean energy use, reduce reliance on imported fossil fuels and lower emissions across transport and power sectors, while creating a more predictable investment environment for green technologies.
