Duty cuts in plan to promote electric vehicles

Duty cuts in plan to promote electric vehicles

Bangladesh is accelerating its transition towards electric vehicles (EVs) under a vision to cut carbon emissions by 3.4 million tonnes and have 30% electric vehicles (EVs) in the country’s total transport by 2030. The government is working on a roadmap to give tax incentives and duty exemptions from the next fiscal year to encourage the import, assembling, and local production of electric vehicles (EVs).

A committee formed by the Cabinet Division has developed a plan that entails tax holidays until 2040 for local EV manufacturing, customs duty reduction on EV components in different tiers in 2030, 2035, and 2041, reducing registration fees for EVs, and a tax break for using solar power in charging stations. The committee also proposed incentivizing the Import and local production of lithium batteries and setting up charging stations.

Although scattered, some plans are already in motion. The government has developed policies for the registration of EVs, guidelines for charging EVs, procuring more EVs, and establishing charging stations. Automobile companies, including Runner Automobiles and Bangladesh Auto Industries Limited, are interested in investing in the sector, aligning with the government’s vision of a Smart Bangladesh.

Source: The Business Standard

Have more queries


Contact us for a comprehensive understanding of the investment landscape in Bangladesh