Environmental surcharge on vehicles

Source: International Energy Agency
Last updated: 24 June 2025

The Finance Act 2023 imposes an environmental surcharge, equivalent to carbon tax, on vehicles. For every second and subsequent vehicle, the owner of cars having up to 1,500cc or 75-kilowatt engines will have to pay BDT 25,000 in an environmental surcharge. The surcharge will double to BDT 50,000 for the car that has an engine capacity of 1501cc to 2,000cc or more than 75kW to 100kW.

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