Bangladesh allocates Tk 4.0 billion for 100 electric buses to cut carbon emissions and modernize public transport

Bangladesh's Finance Division has approved Tk 4.0 billion (about USD 48 million) for the Bangladesh Road Transport Corporation to procure 100 electric buses. The move is part of a broader government push to reduce carbon emissions, modernize public transport, and meet a 30% EV penetration target by 2030. The loan carries a 1% interest rate over 20 years with a two-year grace period, marking the first time BRTC will fund bus purchases through government lending rather than development partner financing. Alongside the bus procurement, the government has directed all ministries, autonomous bodies, and state-owned enterprises to buy only fully electric vehicles for their transport pools this fiscal year. The directive covers cars, buses, trucks, launches, and even aircraft. Tax incentives include full customs duty exemption on electric buses and trucks until 2030, zero tax on EV charging equipment, and a 10-year income tax holiday for companies setting up charging stations. The policy targets replacing 25% of buses and 30% of trucks with electric alternatives.