Bangladesh, June 12 -- The government has moved to reshape the country's transport sector through sweeping tax reforms targeting fossil-fuel vehicles, while offering major incentives for electric mobility, as part of the national budget for the 2026-27 fiscal year.

Finance Minister Amir Khosru Mahmud Chowdhury, presenting the budget before the Jatiya Sangsad on Thursday, said the new measures are designed to reduce carbon emissions, ease pressure on imported fuel, and strengthen long-term energy security.

Under the proposals, tax incidence on internal combustion engine (ICE) vehicles is set to rise sharply.

For cars with engine capacities between 1200cc and 1600cc, the total tax incidence will increase from 132.36 per cent to 155.88 p...