Bangladesh has exempted electric bus and truck imports from all customs duties and taxes until 30 June 2026, as the government seeks to accelerate cleaner transport adoption and reduce long-term dependence on imported fuel.
The tax waiver covers customs duty, regulatory duty, supplementary duty, advance tax and advance income tax on electric commercial vehicles, according to a notification issued by the Internal Resources Division under the Ministry of Finance.
Industry insiders said the move could encourage importers to enter Bangladesh’s nascent electric commercial vehicle market, although concerns remain over charging infrastructure, battery management and the short duration of the incentive.
The facility applies to electric buses with a minimum seating capacity of 17 passengers, including the driver, under HS Code 8702.40.00 and electric trucks with a payload capacity of at least five tonnes under HS Code 8704.60.00.
Only completely new vehicles will qualify for the exemption, excluding reconditioned imports.
The notification also requires imported vehicles to comply with standards set by the Bangladesh Road Transport Authority or other relevant authorities, or carry certification from the type approval authority of the exporting country.
In addition, batteries must carry a minimum warranty of seven years or 3,00,000 kilometres without replacement, supported by proper documentation.
The cabinet approved the facility on May 3 before the National Board of Revenue (NBR) issued the formal notification on 21 May.
Bangladesh Sustainable and Renewable Energy Association President Mostafa Al Mahmud said the initiative could gradually reduce diesel dependence in the transport sector, which remains heavily reliant on imported fuel.
“The introduction of electric buses and trucks can gradually reduce diesel dependence and improve urban air quality over the long term,” he told TIMES of Bangladesh.
However, he said fiscal incentives alone would not be sufficient to develop the sector.
“Significant investment in charging infrastructure and battery management systems will also be necessary. Otherwise, large-scale commercial expansion will remain difficult,” he added.
Institute for Energy Economics and Financial Analysis Lead Analyst Shafiqul Alam said electric commercial vehicles could support Bangladesh’s transition towards cleaner transport systems.
Still, he cautioned that environmental gains would remain limited unless electricity generation also shifts away from fossil fuels.
“Renewable energy generation must expand simultaneously to maximise the environmental gains,” he said.
Business leaders said the market for electric commercial vehicles remains at an early stage in Bangladesh, with many viewing the one-month validity period as a pilot initiative rather than a long-term policy shift.
The notification was issued under the Customs Act 2023, the Value Added Tax and Supplementary Duty Act 2012 and the Income Tax Act 2023, and took immediate effect.
