SANGSAD BHABAN, June 11, 2026 (BSS) - The government has proposed sweeping tax reductions and incentives for electric vehicles (EVs), plug-in hybrid cars, and charging infrastructure in the national budget for the 2026-27 fiscal year, aiming to accelerate the shift toward cleaner and more affordable transport.

Finance Minister Amir Khosru Mahmud Chowdhury today placed the proposals in Parliament while presenting the budget for FY 2026-27, outlining measures to stimulate investment in green mobility and expand supporting infrastructure.

Under the proposed reforms, the overall tax burden on imported electric vehicles priced up to $25,000 would fall sharply to 64 percent from 93 percent. 

For EVs priced up to $50,000, the tax burden would be reduced to 80 percent from 93 percent, making mid-range electric cars comparatively more affordable for consumers.

Significant relief has also been proposed for plug-in hybrid vehicles. The tax rate on models with engine capacities up to 1,800cc would decline to 73.44 percent from 93.16 percent, while vehicles with engines up to 2,000cc would see taxes reduced to 96.10 percent from 132.36 percent.

To encourage infrastructure development, the government has proposed full tax exemption for EV chargers and charging stations, cutting the existing combined tax burden of 39.75 percent to zero. The move is expected to attract private-sector investment in establishing a nationwide charging network.

In addition, the proposal includes a major reduction in advance income tax on EV registration with the Bangladesh Road Transport Authority. Depending on engine capacity, the tax would be reduced to between Taka 25,000 and Taka 1 lakh from the current flat rate of Taka 2 lakh.