Finance Minister Amir Khosru Mahmud Chowdhury has proposed a series of tax concessions for electric vehicles (EVs), plug-in hybrid vehicles (PHEVs), and charging infrastructure, with the aim of supporting the transition to cleaner transportation and reducing the cost of electric mobility for consumers.

The proposal was presented during the tabling of the proposed budget for the 2026-2027 financial year in the Jatiya Sangsad on June 11th.

Under the proposed measures, the overall tax burden on imported electric cars valued at up to US$ 25,000 would be reduced to 64% from 93%. For electric cars priced at up to US$ 50,000, the tax burden would be lowered to 80% from 93%.

Plug-in hybrid vehicles would also be subject to reduced tax rates. The tax burden on models with engine capacities of up to 1,800 cc would be reduced to 73.4% from 93.1%, while the rate for models with engine capacities of up to 2,000 cc would decrease to 96.1% from 132.3%.

To support the development of charging infrastructure, the government has proposed exempting EV chargers and charging stations from all taxes, reducing the combined tax burden from 39.7% to 0%. The measure is intended to encourage private-sector investment in the establishment of a nationwide charging network.

The Finance Minister also proposed a substantial reduction in the advance income tax levied on EV registrations with the Bangladesh Road Transport Authority. Depending on motor capacity, the tax would range from BDT 25,000 to BDT 100,000 (US$ 200-815), compared with the current flat rate of BDT 200,000.