April 14, 2021

How Much Tax Do You Pay On A Car In Bangladesh?

Bangladesh is not a perfect place for car owners. The road safety, the taxes won’t go in your favor. But still, you have to pay for it. There is no other way available. The amount of tax you have to pay when buying a new car or the annual tax is really high. And today, I will try to briefly describe how much tax you have to pay for a car in Bangladesh. So let’s get started.

What Is Tax?

Simply to say that tax is a compulsory financial charge. It is one type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. Basically tax two types, Direct tax, and indirect tax. As a citizen of the country, everyone has a paid Tax.

Why Do You Have To Pay Taxes?

The money a citizen in a country pay as tax goes to many places. Such as paying the salaries of all government workers, and your tax TK also help to support some social organization. Tax money used to assist in building any installation within the country. It also helps to ensure the roads you travel on are safe and well-maintained.

The government needs a sustainable source of funding for social programs and public investments to foster economic growth and development. Taxes do not only pay for public goods and services; it is also the main integrant in the social contract between citizens and the economy. It can be said that you have to pay tax for your benefit.

But my today’s topic is not entirely about Tax. Here I just going to inform you about how much tax you have pay for a car in Bangladesh. So keep your reading.

Yearly Car Tax (According to New Budget 2020-2021)

Bangladeshi govt has increased tax on cars on the 2020-2021 budget. Now you have to pay more than you paid last year. I have tried to explain the full details about the new car tax policy in Bangladesh.

Earlier in 2020, the annual income tax on 1500 CC cars in Bangladesh was 15,000 Taka, but now it has increased to 25,000 Taka! The annual income tax for a 2000 CC car was 30,000 Taka, and now it is 50,000 Taka. You had to pay 50,000 Taka for a car up to 2500 CC earlier in 2020; now, you have to pay 75,000 Taka according to our country’s new tax policy. Up to 3000 CC, it was 75,000 Taka, but now you have to pay 1,25,000 Taka. You have to pay a 2 lakh BDT annual tax for all vehicles above 3500 CC from now on in Bangladesh.

Note that it has increased by 7% to 1500CC, mostly used by the middle and lower classes! 

They now have to pay 25,000 BDT instead of 15,000 BDT. This is not a very good sign for the middle classes in Bangladesh. People didn’t like this new policy of tax by the Bangladeshi govt. This income tax has to be paid every year. And this is going to be bad news for middle-class car owners in Bangladesh.

Car Import Tax in Bangladesh

For importing a car in Bangladesh, dealers and importers have to pay a lot. We have to pay a lot to buy a new car; it may surprise you if you don’t know about car import tax. So, here are the car import tax amount list based on the car’s CC.


Car Import Tax in Bangladesh

Complete build unit (CBU). These cars are fully manufactured and imported. And no parts are added after being brought to the country. These cars are taxed-

  • 0 to 1800 cc 128%
  • 1800 to 2000 cc 221%
  • 2000 to 3000 cc 365%
  • 3000 to 4000 CC 628%

Completely Knocked Down (CKD) The parts of these cars are brought to Bangladesh separately and attached. Proton cars in Bangladesh are included in this category.

  • 0 to 1600 cc 69%
  • 1200% from 1800 to 2000 cc
  • 212% from 2000 to 3000 cc
  • 3000 to 4000 cc 519%
  • 642% up to 4000 CC and above

Hybrid Car Import Tax

Hybrid cars also fall into the group CKD. Like all cars imported from Japan, these cars are taxed except for hybrid cars. misunderstanding

  • 0 to 1600 cc 69%
  • 1200% from 1800 to 2000 cc
  • 150% from 2000 to 3000 cc
  • 212% from 3000 to 4000 cc
  • Over 4000 CC 519%

These are CKD, CBU’s tax rate. There is also a tax on certain vehicles.

There is much controversy surrounding the sudden increase of 50-67% annual income tax on cars. Paying BDT 25,000 a year for 1500 CC cars used by the middle and lower-middle-class can be difficult in many cases. Besides, car owners will be worried if the new tax policy becomes active.

Quickly visit our another page to know about car ownership process in Bangladesh, the link is in below

Car Ownership Transfer Process In Bangladesh


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