Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb

In a landmark policy move, the interim government drastically reduced the import duty on raw materials used in the production of electric bikes (e-bikes) and advanced lithium batteries from as high as 80% to just 1% in some cases.

"Through two separate Statutory Regulatory Orders issued recently, the customs duty on the import of raw materials for e-bikes and lithium-ion and lithium graphene batteries has been reduced from 60%-80% to just 1% in some cases," the Chief Adviser's Special Assistant Faiz Taiyeb Ahmad said in a press statement posted on his Facebook profile today (10 June).

"As a result of this decision, companies like Huawei, Toyota and Walton are planning to make an immediate investment of at least Tk200 crore. This will start local production of new e-bikes, three and four-wheeled EVs, and mobile tower batteries in Bangladesh," he also wrote.

Taiyeb, special assistant to the CA on posts, telecommunications and information technology ministry, also said the move is expected to save the country's energy, reduce carbon emissions, and conserve foreign exchange, as well as diversify exports and create employment.

According to the press statement, the policy development was initiated by Taiyeb himself.

Tayeb wrote that due to the new SROs coming into effect, the path to manufacturing e-bikes, lithium-ion and lithium-graphene batteries will be opened in the country and the use of modern technology will be ensured instead of harmful lead-acid batteries in 'easy bikes' and rickshaws.

Besides, export development and revenue leakage of at least Tk1,000 crore will be possible.

He also said SRO No. 123 of 2022 has been repealed to stop the trend of revenue evasion and increase in e-waste through the import of old and refurbished electronics, routers, switches and computer parts. "This will enable the government to recover an estimated Tk1,000 crore in revenue every year."