DHAKA, June 12, 2026 (BSS) - ActionAid Bangladesh and the Just Energy Transition Network Bangladesh (JETnet-BD) have welcomed the unprecedented customs duty and tax exemptions for renewable energy and eco-friendly technologies proposed in the national budget for fiscal year 2026-27, describing the measures as a milestone for Bangladesh's just energy transition.

In a joint statement issued today, the two organizations thanked the government for introducing historic and reform-oriented fiscal measures aimed at building a sustainable, environmentally friendly and self-reliant power and energy sector.

They said the incentives for renewable energy, solar equipment and the electric vehicle (EV) industry would accelerate the country's transition to clean energy while reducing dependence on imported liquefied natural gas (LNG) and liquid fuels.

The organizations noted that the government has identified the energy sector as one of the ten priority sectors in the proposed budget under the theme "Economic Democratization and Decentralization: Bangladesh on the Pathway to a Trillion-Dollar Economy."

According to the statement, the proposed allocation for the power and energy sector has been increased to Tk 17,345 crore for FY2026-27 from Tk 16,952 crore in the previous fiscal year, reflecting the sector's growing importance in achieving national renewable energy targets.

ActionAid Bangladesh and JETnet-BD particularly welcomed the proposed waiver of customs duties, regulatory duties, supplementary duties and advance tax on the import of essential solar power generation components until June 30, 2031.

They also praised the continuation of a zero percent tax rate on solar power generation until 2035 and the proposed 5 percent tax rebate for consumers on solar electricity bills, saying the measures would encourage wider adoption of solar energy at the grassroots level.

The organizations further appreciated the duty and tax exemptions on imported raw materials for domestic production of lithium-ion and sodium-ion batteries and battery packs until June 2030, describing the move as a significant boost for green battery manufacturing.

Regarding the electric vehicle sector, they welcomed the proposal to substantially reduce duties and taxes on locally manufactured EVs and exempt raw materials and components used in electric bus and truck production from most taxes until June 2031.

The statement also praised the reduction in the overall tax burden on imported EVs valued up to US$25,000 and the complete removal of duties and taxes on EV chargers and charging stations.

At the same time, the organizations expressed support for higher taxes on imported fossil-fuel-powered vehicles, saying the measure would help curb air pollution and promote cleaner transportation.

ActionAid Bangladesh and JETnet-BD said the government's initiatives, including least-cost power generation planning, anti-corruption measures and reviews of existing capacity payments, would contribute to greater transparency and efficiency in the energy sector.

They expressed hope that the fiscal incentives announced in the proposed budget would help Bangladesh achieve its targets of generating 20 percent of electricity from renewable sources and producing 10,000 MW of solar power by 2030.