Govt offers wide-ranging incentives for electric vehicle production, imports and charging infrastructure
Bangladesh cuts EV duties to 64%, removes charger tariffs, and raises fossil-fuel taxes 23% to accelerate domestic EV manufacturing. The shift resets fleet procurement costs and signals rapid regional EV adoption, impacting enterprise budgets and infrastructure decisions.
June 11, 2026
Senior Correspondent
bdnews24.com
The government has proposed several fiscal changes in the 2026-27 budget to discourage the use of petrol, diesel, or CNG-powered vehicles and accelerate the adoption of electric vehicles (EVs).
The budget framework plans to raise the overall tax incidence on internal combustion engine vehicles by roughly 23 percent, while offering diverse benefits, including cuts to import duties and advance income tax, for EV manufacturing equipment.
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It also proposes lowering taxes on imported electric vehicles
Taxes on mid-range internal combustion engine vehicles will increase
The government is set to backtrack from its plans to reintroduce a wealth tax and impose a first-ever advance income tax (AIT) on…
From tobacco to appliances and imports, revised taxes and tariffs are expected to ripple through consumer markets
The budget proposes to reduce the source tax rate on 60 daily essentials, basic agricultural products and consumer goods
Tax relief is also being provided on the import of raw materials for industries producing poultry, dairy, and fish feed
