The proposed budget for the 2026–27 fiscal year includes measures aimed at making battery-powered electric vehicles (EVs) more affordable for ordinary consumers, while increasing taxes on mid-range fossil fuel-powered vehicles.

The move represents a major policy initiative by the government to promote environmentally friendly transport and greater use of renewable energy.

The government has proposed substantial duty and tax concessions on the import of electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), related equipment and charging infrastructure. At the same time, the proposed budget includes higher taxes on the import of certain fossil fuel-dependent vehicles.

Finance Minister Amir Khasru Mahmud Chowdhury announced the measures, saying they were intended to encourage the use of environmentally friendly transport.