The government is preparing a policy that mandates the purchase of 30 percent electric vehicles (EVs) without developing infrastructure. Under this policy, starting from the next five years until 2030, government, semi-government, autonomous bodies, and various corporations will be required to buy these vehicles.
The Electric Vehicle Policy draft mentions this requirement. The Ministry of Industry has prepared the draft of the policy and sent it to various ministries for feedback.
The draft includes that electric vehicles will provide the public with affordable transportation, create a new export sector, and save on fuel imports. Employment opportunities will also be created through the use, charging, and maintenance of these vehicles.
Experts, however, say that implementing this requirement without proper infrastructure in place will be challenging. Specifically, without charging stations and skilled technicians, even if electric vehicles are purchased, they will be unusable.
Dr. Md. Hadiuzzaman, a transportation expert and professor of BUET, told Bangladesh Protidin that it’s good that the government is making a policy for electric vehicles, but the focus should be on creating a sustainable and integrated policy.
He said that there are already too many vehicles on the road compared to available space, and the lifetime of cars is short. Therefore, old cars need to be replaced with new ones. It’s also important to check whether the power supply capacity exists to support charging stations. Furthermore, electric vehicles have different maintenance needs compared to engine-driven vehicles, so skilled technicians must be trained before these vehicles hit the roads. Otherwise, the vehicles will end up stranded, and there will be no one to repair them.
Officials from the Ministry of Industry stated that the draft policy includes incentives like tax exemptions for charging stations and battery production in the electric vehicle industry. They added that additional provisions could be added once feedback is received.
Cash and Subsidy Benefits:
The draft policy includes various incentives such as tax exemptions, subsidies, cash incentives, and more. It has been stated that special incentives will be provided if old engine vehicles are scrapped and replaced with electric vehicles.
The bank loan limit for purchasing electric vehicles will be increased to 60% for new vehicles. A bonded warehouse facility will be provided in the industry, and incentives will be given to promote the export of vehicles and parts.
Financial incentives and policy support will be provided for the development of backward linkage industries. A "Research and Innovation Center" will be established to promote the electric vehicle industry.
Additionally, the lifetime of motor vehicles will be specified, and electric vehicle-related courses will be included in technical educational institutions.
Popular special electric four-wheelers and three-wheelers will also be brought under the registration system.
Incentives for Private Sector in Charging Station Setup:
One of the biggest challenges in the adoption of electric vehicles is the establishment of adequate charging points, especially in Dhaka and across the country. The draft policy includes provisions for providing special incentives to the private sector for setting up charging stations.
Companies setting up EV charging stations or manufacturing related components will be granted tax exemptions for the next 10 years. The Ministry of Power will take initiatives to establish the necessary charging stations based on the demand for electric vehicles.
In addition, public charging stations will be incentivized by the government, and the building codes will be amended to include EV parking and charging stations in urban areas.
The ministry will also work with public and private fuel distributors to establish EV charging stations.
Tax and VAT Exemptions for Battery Production:
Domestic electric vehicle manufacturers will receive tax exemptions for the production of lead batteries and lithium-ion batteries under the “Made in Bangladesh” initiative.
Furthermore, lithium battery production companies will be granted VAT exemptions for local sales and marketing of electric vehicle batteries.
To promote the electric vehicle industry, a council will be formed, led by the Minister or Advisor of the Ministry of Industry. An implementation committee will be formed, with the Secretary of the Ministry of Industry at its helm.
Under this policy, electric vehicle identification will be ensured by June 2026, and from 2026, the registration process will be finalized.
Bd-pratidin English/ ANI
