Dhaka: The government is set to unveil the ‘Electric Vehicle Industry Development Policy 2025’ this year, aimed at creating an environmentally friendly transportation system and boosting industrialization in the nation. The Ministry of Industries is spearheading this initiative.
According to Bangladesh Sangbad Sangstha, the policy establishes an integrated framework to reduce carbon emissions, conserve energy, and generate employment opportunities. It outlines a roadmap for evolving the electric vehicle (EV) industry into a sustainable and competitive sector. As part of this, a 1% Supplementary Duty will be imposed on the import of industrial raw materials and components for electric vehicle manufacturers, alongside income tax exemptions for manufacturing enterprises at various stages until 2040. Tax exemptions are also proposed for the production of lead and lithium-ion batteries used in EVs, with the drafting of the policy already complete.
Sultana Yasmin, Joint Secretary of the Policy, Law, and International Cooperation sub-division of the Ministry of Industries, indicated to BSS that the policy will be finalized within this year. She emphasized the expected increase in electric vehicle usage and the goal of enabling domestic production of EVs and their components. A draft is available on the ministry’s website for stakeholder feedback, with finalization pending discussions with relevant stakeholders.
The policy underscores the importance of reducing carbon emissions in the transport sector to combat global warming and climate change impacts, given the transport sector’s significant contribution to greenhouse gas emissions. It advocates for increased use of electric vehicles as an alternative to fossil fuel-powered vehicles.
The policy envisions transforming the country’s electric vehicle industry into a robust and sustainable one, aiming for an eco-friendly transportation system by reducing fossil fuel dependency. It targets a significant reduction in transport sector carbon emissions by 2030, while also focusing on boosting local EV production, creating export potential, and developing a skilled workforce.
Tax benefits and incentives are designed to attract investment in the EV sector, including up to 50% reduction in EV registration fees, exemption of Advance Income Tax until 2030, low customs duties on imports, and duty benefits on battery and component imports. The policy encourages local component manufacturing, research, and development to foster domestic industry growth and employment.
Initiatives include establishing charging stations nationwide to support EV infrastructure, with encouragement for both public and private sector involvement and expansion of charging facilities through renewable energy. Plans also incorporate EV charging facilities in new building constructions.
The policy prioritizes EV safety, battery management, and adherence to international standards, with vehicle registration, fitness, and quality control aligned with existing laws. Additionally, it mandates registration of the country’s numerous three-wheeled electric vehicles by BRTA after meeting prescribed standards and testing.
By 2030, at least 30% of vehicles purchased by government, semi-government, and autonomous bodies are required to be electric. An ‘Electric Vehicle Industry Development Council’ will be formed to oversee the policy’s implementation, coordination, monitoring, and evaluation, supported by an Implementation Committee and Technical Committee.
Plans are also in place to establish research and innovation centers, develop skilled manpower, and integrate EV topics in technical education, building a skilled human resource base for the long term. Stakeholders believe the policy’s effective implementation will open new avenues for environmental protection, energy savings, industrialization, and modern technology use, strengthening Bangladesh’s position in the global electric vehicle market.