The Bangladesh government has permitted the duty-free import of electric buses for educational institutions to support student transportation.

The Internal Resources Division (IRD) under the Ministry of Finance issued a statutory regulatory order (SRO) recently, following consultations with the National Board of Revenue (NBR).

Under the SRO, electric buses imported for student transport will receive full exemption from customs duty (CD), regulatory duty (RD), value-added tax (VAT), supplementary duty (SD), advance tax (AT), and advance income tax (AIT).

The facility applies to buses with a minimum seating capacity of 17, including the driver.

Both public and private educational institutions, as well as importers contracted to provide student transport services, will be eligible for this benefit.

To qualify, the buses must be brand new and comply with the standards set by the Bangladesh Road Transport Authority (BRTA) or other relevant authorities. Alternatively, certification from the exporting country's type approval authority will be accepted.

The batteries of the buses must carry a minimum warranty of seven years or 300,000 kilometres, supported by appropriate documentation. The buses must be painted yellow and clearly marked as "School/College/Student Bus".

For safety purposes, they must also be equipped with CCTV or IP cameras and GPS tracking systems. The vehicles cannot be used for commercial purposes, including rental or ride-sharing services, and must be registered with the BRTA as student transport buses.

According to the notification, the imported buses must be used exclusively for student transport for a minimum period of five years. After this period, transfer or sale may be permitted with prior approval, without any tax liability.

However, if a bus is transferred within five years, the applicable duties and taxes will be imposed after adjusting for depreciation, subject to approval.

Importers will be required to apply to the NBR with the necessary documentation in order to obtain the exemption, and the board will issue a decision within 10 working days following verification. An undertaking on non-judicial stamp paper must also be submitted to the customs authorities to ensure compliance with the conditions.

In the event of any violation, the exemption will be cancelled, and all applicable duties, taxes, fines, and interest will be recovered. The importer will also become ineligible for such benefits in the future. The SRO came into effect immediately and will remain valid until June 30th, 2026.

NBR officials stated that the initiative is expected to increase the use of electric buses for student transportation across the country.