Tax incentives for renewables, EVs

Government announced a series of sweeping tax incentives aimed at accelerating the adoption of renewable energy and electric vehicles (EVs), as the country seeks to reduce its dependence on imported fossil fuels and build a more sustainable industrial economy in the 2026�"27 fiscal year.

The measures, unveiled on Thursday as part of the national budget, including tax holidays for the solar power sector, reduced taxes for electric vehicles, and new incentives to attract investment in EV manufacturing.

Under the proposed measures, the government plans to introduce a zero percent tax rate for the solar power sector until 2035 to encourage environmentally friendly and affordable electricity generation.

Consumers using solar electricity would also receive a 5 percent tax rebate on electricity bill payments, according to the proposal.

The government also proposed a range of duty and tax exemptions for companies manufacturing EVs and EV components in Bangladesh.