The government, for the first time, is planning to bring motorcycles and battery-run auto-rickshaws under the advance income tax system. In the proposed 2026–27 budget, motorcycles may face an annual tax ranging from Tk 2,000 to Tk 10,000 based on engine capacity (CC).
According to Finance Ministry sources, Finance Minister Amir Khasru Mahmud Chowdhury has approved the proposal at a budget-related meeting.
Under the proposal: No tax for motorcycles up to 110cc, Tk 2,000 for 111–125cc , Tk 5,000 for 126–165cc, Tk 10,000 for motorcycles above 165cc.
Data from the Bangladesh Road Transport Authority shows that the country currently has around 4.87 million registered motorcycles. The government expects to collect nearly Tk 1,520 crore annually from taxable motorcycles.
Industry insiders fear the new tax could negatively affect motorcycle sales and production, especially for middle-income users.