Business leaders warn imports may hurt local industry
18 June 2026, 00:00 AM
J
Jagaran Chakma
The government’s proposed tax incentives and duty cuts for electric vehicles (EVs) in the fiscal year 2026-27 budget are expected to give a significant boost to Bangladesh’s nascent EV market, industry insiders said.The measures signal official recognition of electric mobility and could accelerate the country’s shift towards cleaner transport. However, some business leaders warn that the incentives may favour imports over domestic manufacturing.In the proposed budget, the government has extended tax incentives for electric buses and trucks until June 30, 2030, to reduce pollution and strengthen energy security.It has also proposed substantial tax cuts on imported EVs. The total tax burden on electric cars valued at up to $25,000 will fall to 64 percent from 93 percent, while EVs priced at up to $50,000 will face an 80 percent tax burden.
