List of tax-free motorcycles released, do you have a bike?

The National Board of Revenue is planning to impose a new advance income tax (AIT) on motorcycles in the upcoming 2026-27 fiscal year budget. According to the proposal, no advance income tax will have to be paid for motorcycles up to 110 cc. However, motorcycles with more than this cc may have to pay tax at a prescribed rate.

Sources said that it is being considered to set an advance income tax of Tk 2,000 per year for motorcycles from 111 to 125 cc, Tk 5,000 for 126 to 165 cc and Tk 10,000 for motorcycles above 165 cc. The number of motorcycles registered in the country is currently more than 4.87 million, according to the Bangladesh Road Transport Authority.

Experts say that motorcycles are now used not only for personal use, but also for commercial purposes in many cases. Therefore, bringing this sector under the tax umbrella will expand the tax net and increase revenue. Communication expert Professor Hadiuzzaman said that this will reduce the pressure on those who pay taxes regularly.

Currently, there is no advance income tax payable on motorcycles. Drivers only have to pay a one-time registration fee and road tax at regular intervals. Under the existing income tax law, owners of battery-powered rickshaws and motorcycles will have the opportunity to reconcile the advance tax with their income tax returns later.