Motorcycle users have submitted a memorandum to the chairman of the National Board of Revenue (NBR) demanding the withdrawal of a proposed advance income tax (AIT) on motorcycles in the 2026-27 national budget.
Under the proposed budget, motorcycles with engine capacities up to 110cc would remain exempt from tax. However, an annual AIT of Tk2,000 may be levied on motorcycles between 111cc and 125cc. Bikes in the 126cc to 165cc range could face Tk5,000 annually, while motorcycles above 165cc may be subjected to Tk10,000 per year.
The memorandum was handed over following a human chain demonstration in front of the NBR headquarters at Agargaon in Dhaka on Sunday.
During the demonstration, participants carried placards highlighting the potential financial impact. According to the Bangladesh Road Transport Authority, there are over 4.8 million registered motorcycles in the country, reflecting the sector’s wide usage and economic significance.
Representing the bikers, AKM Emon submitted the memorandum and addressed the human chain, saying motorcycles are already heavily taxed in Bangladesh. “A motorcycle that costs Tk100,000 in India has to be purchased for nearly Tk300,000 here,” he said.
He added, “Motorcycles are a necessity for ordinary people. Many earn Tk500 to Tk1,000 daily through ride-sharing and delivery services using motorcycles. If this tax is imposed, their livelihoods will be severely affected. We urge the government to reconsider the decision.”
Emon confirmed that the memorandum was received by a customs policy official. “We told them that it would not be possible for us to bear any additional financial burden,” he said.
Rider Lima Shimu, who joined the protest, said she bought a motorcycle to ensure safer transportation. “Now we have to pay an additional tax for that. It is unfortunate,” she said.
Protesters argued that motorcycle owners already pay multiple levies, including registration fees, road tax, fitness certificates, insurance, and fuel taxes. Imposing an additional AIT, they said, would place disproportionate pressure on middle- and lower-middle-income groups.
The bikers called for either a complete withdrawal or a rational reconsideration of the AIT proposal, urging the government to recognise motorcycles as essential transport rather than luxury items.
NBR officials confirmed the proposed tax structure: exemption up to 110cc, Tk2,000 on 111cc-125cc bikes, Tk5,000 on 126cc-165cc motorcycles, and Tk10,000 for bikes above 165cc annually. The matter was discussed by the NBR policy wing with the Prime Minister at the Secretariat last Thursday. Following media coverage, motorcycle users organised the Agargaon human chain to press for scrapping the advance tax proposal.
