Dhaka: The interim government has taken a groundbreaking step in the green technology-based transportation, electric vehicle (EV), and lithium battery industry in Bangladesh. Through two separate Statutory Regulatory Orders (SROs) issued recently, the customs duty on the import of raw materials for e-bikes and lithium or graphene batteries has been set at only 1 percent, reducing the rate by 60-80 percent, said an official handout today.
According to Bangladesh Sangbad Sangstha, as a result of this decision, companies like Huawei, Toyota, and Walton are planning to immediately invest at least Tk 200 crore. This initiative is expected to lead to the local production of new e-bikes, three and four-wheeled EVs, and mobile tower batteries in Bangladesh. The move aims to save the country’s energy, reduce carbon emissions, save foreign exchange, diversify exports, and create employment.
Faiz Ahmad Taiyeb, Chief Adviser’s Special Assistant on Posts, Telecommunications, and Information Technology Ministry, initiate
d the policy. On May 5, he sent a research-based DO or semi-official letter to the National Board of Revenue Chairman with various references. Chief Adviser’s Special Envoy for International Affairs Lutfey Siddiqi oversaw the overall matter. Internal Resources Division Secretary and National Board of Revenue (NBR) Abdur Rahman Khan and Commerce Secretary Mahbubur Rahman played a very important role in this policy change.
The entire team presented research-based proposals through multiple meetings and consultations. The Finance Ministry has also considered this proposal with importance. The benefits anticipated from the new SRO include the local production of e-bikes, lithium-ion, and lithium-graphene batteries; the adoption of modern technology instead of lead-acid batteries in ‘easy bikes’ and rickshaws; and the encouragement of both domestic industry acceleration and foreign investment. Additionally, it is expected that revenue leakage could be reduced by at least Tk 1000 crore in export development.
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over, SRO No. 123 of 2022 has been repealed to stop the trend of revenue evasion and the increase in e-waste through the import of old and refurbished parts. This change will enable the government to recover an estimated Tk 1000 crore in revenue every year.
Concerned parties have termed this policy reform as the ‘foundation stone of a new journey in green transportation, EV, and environment-friendly battery industry production’ with the aim of creating an information and technology-based, green Bangladesh.