Bike, e-rickshaw owners to pay tax
The National Board of Revenue (NBR) is set to bring motorcycles and battery-run auto-rickshaws under the advance income tax (AIT) system for the first time in the proposed national budget for fiscal year 2026–27, according to Finance Ministry sources.
The move aims to broaden the country’s tax base and generate additional revenue for the state treasury.
Currently, advance income tax is levied only on vehicles such as private cars, jeeps, buses, trucks, pickups, and CNG-run auto-rickshaws.
The upcoming budget proposes extending this framework to include motorcycles and battery-run three-wheelers.
Finance Minister Amir Khosru Mahmud Chowdhury is reported to have approved the proposal during a recent budget meeting.
Under the plan, motorcycles with engine capacities up to 110cc will remain exempt. Those between 111cc and 125cc may face an annual tax of Tk2,000, motorcycles between 126cc and 165cc could be taxed Tk5,000, and bikes above 165cc may attract Tk10,000 per year.
According to the Bangladesh Road Transport Authority (BRTA), there are currently around 4.87 million registered motorcycles in the country.
Estimates suggest that, excluding motorcycles up to 110cc, roughly 3.8 million could fall under the new tax regime.
If the government collects an average of Tk4,000 per taxable motorcycle annually, this could generate approximately Tk1,520 crore in revenue each year.
At present, motorcycle owners pay a one-time registration fee and a road tax every two years.
Registration for motorcycles between 50cc and 125cc costs Tk9,291, with a Tk1,150 road tax; for motorcycles over 125cc, registration is Tk11,764 with a Tk2,300 road tax. Existing AIT rates vary by vehicle type, with CNG-run auto-rickshaws currently paying Tk2,500 annually, while private cars and jeeps pay between Tk25,000 and Tk2 lakh depending on engine size.
Industry insiders have expressed concerns that the proposed tax may affect Bangladesh’s rapidly growing motorcycle sector, which has seen significant domestic and foreign investment over the past decade.
International brands including Honda, Yamaha, Suzuki, Bajaj, and TVS have expanded operations, providing employment to millions directly and indirectly.
The government also plans to impose AIT on battery-run auto-rickshaws, with annual rates set at Tk5,000 in city corporations, Tk2,000 in municipalities, and Tk1,000 in union areas.
Sector estimates suggest that at least five million such vehicles operate nationwide, though official data is limited due to the absence of mandatory registration.
Last year, the government drafted the “Electric Three-Wheeler Management Policy 2025” to formalise registration, fitness certificates, and tax tokens.
Economist Zahid Hussain commented that while the proposal may help expand the revenue base, enforcing taxation on unregistered battery-run rickshaws will present a significant challenge for the authorities.
