Dhaka, June 11 -- The government has proposed several fiscal changes in the 2026-27 budget to discourage the use of petrol, diesel, or CNG-powered vehicles and accelerate the adoption of electric vehicles (EVs).

The budget framework plans to raise the overall tax incidence on internal combustion engine vehicles by roughly 23 percent, while offering diverse benefits, including cuts to import duties and advance income tax, for EV manufacturing equipment.

Finance Minister Amir Khosru Mahmud Chowdhury rolled out the new fiscal outline in parliament on Thursday.

He said the government would issue a notification offering duty and tax concessions to support domestic production of environmentally friendly electric vehicles and locally made EV ...