The National Board of Revenue (NBR) has announced that all import duties on electric school buses will be removed, a move aimed at promoting energy efficiency and reducing fuel consumption in the transport sector.
NBR Chairman Md Abdur Rahman Khan made the announcement on Tuesday during a pre-budget consultation for the 2026-2027 fiscal year at the Revenue Building.
He described the duty waiver as part of the first phase of the government’s broader plan to encourage the adoption of electric vehicles (EVs) and enhance sustainable transportation in Bangladesh.
Unlike most fiscal measures tied to the national budget, the duty exemption for electric school buses will take effect immediately.
“We will not wait for the upcoming budget to implement this initiative,” Abdur Rahman Khan said, adding that a Statutory Regulatory Order (SRO) will be issued shortly to formalise the exemption.
He also noted that while the national budget will include further incentives for the EV sector, this particular step is being fast-tracked to deliver immediate benefits.
During the discussions, leaders from various transport associations, including the Bangladesh Automobile Assemblers and Manufacturers Association (BAAMA) and the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), proposed measures to reduce EV registration costs, advocating clearer definitions based on engine capacity and kilowatts.
The NBR chairman also addressed long-standing issues with VAT refunds, which have been delayed for over a year due to the absence of an automated system.
He promised that the refund process would be streamlined as operations move online.
While requests to cut taxes on jet fuel were declined due to concerns over theft prevention, the NBR maintained that environmental objectives, including support for EV adoption, would remain a key focus in balancing revenue needs with sustainability goals.
The pre-budget discussion was attended by industry leaders from the automobile, motorcycle, shipbuilding and aviation sectors, reflecting the government’s commitment to engaging stakeholders in shaping transport policies.
