Cabinet approves tax relief for brand new electric vehicle imports
The electric buses will have to be used in sectors other than student transportation.
The Cabinet has approved a set of tax measures for the import of completely new electric vehicles, including buses and trucks.
The decision was taken at a Cabinet meeting - chaired by Prime Minister Tarique Rahman - held in the Cabinet Room of the National Parliament at 6:45pm on Sunday (3 May), according to a statement from the Cabinet Division.
Under the decision, a notification will be issued to maintain the Value Added Tax (VAT) at 15% for electric buses with a minimum of 17 seats, for use in sectors other than student transportation.
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At the same time, these imports will be exempted from customs duty (CD), regulatory duty (RD), supplementary duty (SD), advance tax (AT) and advance income tax (AIT), subject to certain conditions.
According to Cabinet Division sources, the National Board of Revenue will soon issue a notification in this regard. The facility will remain in effect till 30 June 2026 - i.e. the end of the current fiscal year of 2025-26.
It follows an earlier decision to allow the duty-free import of electric buses for educational institutions to promote safe and environmentally friendly transportation for students.
A similar notification will also be issued for the import of trucks with a capacity of five tonnes or more, the statement added.
The initiative was proposed by the Internal Resources Division, the statement said.
