Bangladesh to slash import duties on electric buses, trucks until June 2026

Only 15 percent VAT will apply under the temporary tax relief scheme

Bangladesh will offer substantial tax breaks on imports of electric buses and trucks for commercial use, extending incentives beyond educational institutions.

The decision was approved at a cabinet meeting on Sunday, the Cabinet Division said in a statement.

Under the new policy, only 15 percent value added tax (VAT) will be charged on imports of new electric buses and trucks.

All other duties and taxes will be fully waived.

These include customs duty, regulatory duty, supplementary duty, advance tax and advance income tax.

According to the National Board of Revenue (NBR), import taxes on electric buses, cars and trucks currently range from 61.80 percent to 93.16 percent.

The new concession will remain in force until Jun 30, 2026.

The Cabinet Division said the tax waiver will apply, subject to conditions, to imports of new electric buses with a minimum seating capacity of 17 passengers.

A separate notification will be issued extending the same benefit to electric trucks with a carrying capacity of five tonnes or more.

On Apr 30, the government had already granted full duty and tax exemptions on electric buses imported for transporting students at schools, colleges, universities and similar educational institutions.

Previously, such imports had been subject to a total tax burden of 61.8 percent.

The latest move is aimed at encouraging wider adoption of electric vehicles and supporting cleaner transportation across Bangladesh.