Dhaka: The interim government of Bangladesh has initiated a significant move in the realm of green technology-based transportation by setting a mere 1 percent customs duty on the import of raw materials for e-bikes and lithium or graphene batteries. This decision, enacted through two recent Statutory Regulatory Orders (SROs), represents a substantial reduction in the previous rate by 60-80 percent.
According to Bangladesh Sangbad Sangstha, this policy shift has already attracted interest from major companies such as Huawei, Toyota, and Walton, which are planning to invest a minimum of Tk 200 crore. This investment indicates a robust push towards local production of new e-bikes, three and four-wheeled electric vehicles (EVs), and mobile tower batteries. The initiative is expected to conserve the country’s energy, decrease carbon emissions, save foreign exchange, diversify exports, and create employment opportunities.
Faiz Ahmad Taiyeb, serving as the Chief Adviser’s Special Assistant on Posts, Telecommunications and Information Technology Ministry, played a pivotal role in initiating this policy. On May 5, he forwarded a research-based DO or semi-official letter to the National Board of Revenue Chairman, backed by various references. The policy’s overall supervision was conducted by Lutfey Siddiqi, the Chief Adviser’s Special Envoy for International Affairs.
Key figures such as Internal Resources Division Secretary and National Board of Revenue (NBR) Abdur Rahman Khan and Commerce Secretary Mahbubur Rahman were instrumental in this policy shift. The team presented research-driven proposals through numerous meetings and consultations, which the Finance Ministry considered crucial.
The benefits anticipated from the new SRO include the facilitation of e-bike, lithium-ion, and lithium-graphene battery production within the country. It will ensure the adoption of modern technology over lead-acid batteries in ‘easy bikes’ and rickshaws, boost local industry growth, attract foreign investment, and potentially reduce revenue leakage by at least Tk 1000 crore in export development.
Moreover, SRO No. 123 of 2022 has been repealed to curb revenue evasion and minimize e-waste resulting from the import of old and refurbished parts, enabling the government to recover an estimated Tk 1000 crore in revenue annually.
The stakeholders have hailed this policy reform as the ‘foundation stone of a new journey in green transportation, EVs, and environment-friendly battery industry production,’ aiming to establish an information and technology-based, green Bangladesh.