The government has decided to waive import duties on electric buses for schools, a decision made at the first cabinet meeting of the new administration, announced National Board of Revenue (NBR) Chairman Abdur Rahman Khan.
The move is part of a broader strategy to support the transport sector in the upcoming budget, with a focus on encouraging the entry of new vehicles through targeted policy support.
The announcement was made during a pre-budget meeting held at the NBR headquarters in Agargaon on Tuesday.
At the meeting, the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) raised concerns about the decline in vehicle registrations and called on the government to reduce supplementary duties to revive demand.
The association also proposed recognising plug-in hybrid electric vehicles (PHEVs) as electric vehicles, citing their battery-powered operation in electric mode, which qualifies them for existing electric vehicle incentives.
Barvida President Abdul Haque recommended setting duties on PHEVs at 50 per cent based on engine capacity. He also proposed reducing supplementary duties on low-cc vehicles and station wagons to 15 per cent from the current 45 per cent, eliminating such duties on 10–23 seater public transport microbuses, and cutting import duties on buses to as low as 1 per cent.
The association further suggested lowering the duty on pickup vans to 5 per cent. Additionally, Barvida called for reforms to the reconditioned vehicle policy, including revising the definition, adjusting depreciation calculations, and withdrawing dealer commission adjustments.
The association also proposed introducing a fixed tax regime to address under-invoicing in new vehicle imports, which it claims leads to revenue losses and creates uneven competition.
Barvida criticised the current supplementary duty structure, noting that rates in some cases reach as high as 500 per cent, and recommended capping these duties at 200 per cent.
They also proposed raising the age limit for imported vehicles from five to eight years, with the potential to save up to 50 per cent in foreign exchange.
Several other stakeholders presented their demands. The Bangladesh Petroleum Dealers, Distributors and Agents Association requested duty exemptions on tank lorry imports for fuel transportation.
The Bangladesh Tank Lorry Owners Association also called for duty waivers on chassis imports. Meanwhile, the Bangladesh Motorcycle Assemblers and Manufacturers Association proposed reducing tax burdens on the sector and offering incentives for CNG and electric motorcycles, as well as making disassembled engine imports mandatory.
Responding to the proposal for CNG motorcycles, the NBR Chairman highlighted the country’s gas shortage and increasing reliance on LNG, suggesting that the focus should shift toward renewable energy sources.
The Aviation Operators Association of Bangladesh also urged the government to reconsider the sharp rise in jet fuel taxes, from Tk 18 to Tk 42, and restore the previous rate.
However, the NBR Chairman indicated limited room for tax cuts, emphasising the need to raise revenue collection to Tk 6 lakh crore from the current target of Tk 4 lakh crore.
Abdur Rahman Khan assured stakeholders that all proposals would be carefully reviewed as part of the ongoing budget formulation process.
The NBR Chairman emphasised the government’s commitment to creating a balanced approach that supports industry growth while ensuring necessary revenue generation.
