Bangladesh is poised to attract a fresh investment of Tk 2 billion in its green transportation and battery manufacturing sectors from Huawei, Toyota, and Walton, following major fiscal incentives announced in the proposed national budget.
The government has issued two Statutory Regulatory Orders (SROs) that significantly reduce import duties on key raw materials for electric bikes (e-bikes) and lithium/graphene batteries. Under the new policy, duties have been slashed from 60–80 percent to as low as 1 percent in specific cases.
This strategic policy shift has already caught the attention of global and local industry giants including Huawei, Toyota, and Walton, who are reportedly preparing to invest more than Tk 2 billion in the sector, according to a press release from the Ministry of Posts and Telecommunications.
The initiative is expected to catalyze domestic production of e-bikes, electric three- and four-wheelers, and lithium-ion batteries for use in mobile towers and transport systems.
Experts say the move will generate wide-ranging national benefits, including energy conservation, reduced carbon emissions, foreign exchange savings, job creation, and export diversification.
The reform was spearheaded by Fayez Ahmad Tayyeb, Special Assistant to the Chief Adviser in charge of the Ministry of Posts, Telecommunications and Information Technology. On May 5, 2025, he submitted a research-backed demi-official letter to the Chairman of the National Board of Revenue (NBR), advocating for the policy change with detailed data and analysis. The effort was closely monitored by Lutfe Siddique, Special Envoy to the Chief Adviser.
Key figures such as Md. Abdur Rahman Khan, Secretary of the Internal Resources Division and Chairman of the NBR, and Commerce Secretary Mahbubur Rahman, played instrumental roles in advancing the proposal. The initiative took shape through a series of consultative meetings and collaborative research, with the Ministry of Finance acknowledging its strategic value.
Key Outcomes Expected from the New SROs:
- Launch of domestic production of e-bikes and lithium/graphene batteries
- Phasing out of outdated lead-acid batteries in rickshaws and ‘easy bikes’
- Surge in local industrial activity and foreign direct investment
- Boost in export potential and recovery of up to Tk 10 billion in revenue losses
In a related move, the government has repealed SRO No. 123 of 2022, which had allowed tax exemptions for used or refurbished electronic components. This is expected to reduce electronic waste and curb tax evasion, potentially recovering an estimated Tk 10 billion in annually.