The Dhaka Transport Coordination Authority (DTCA) is considering imposing a green tax on used motor vehicles reaching the economic life of 10 years or above to discourage owners from running older vehicles and reduce environmental pollution.
Officials said that they are considering a 15% to 25% tax on such vehicles in Dhaka, Narayanganj and Gazipur.
Bangladesh reiterated last year at the Glasgow summit that it will cut carbon emissions by 89.47 million tonnes, equivalent to 21.85% of CO2, by 2030 as part of efforts to participate in global mitigation efforts.
According to a study, Bangladesh emits 169 million tons of greenhouse gases annually and the transport sector contributes 9.92% of it.
Many polluted cities in the world, including Mumbai, have already imposed green taxes.
“A policy is being drafted, including a provision of imposing a 15% to 25% green tax,” said Shabiha Pervin, executive director of DTCA.
“More taxes can be imposed on diesel-run vehicles and vehicles running in the most polluted cities, like Dhaka, Gazipur, and Narayanganj,” she told Dhaka Tribune.
According to the draft Green Tax Policy, owners are to pay the green tax on their total road tax liabilities. For instance, if their road tax is Tk6000, the maximum green tax applicable will be Tk1500.
The tax will be increased by 1% for much older vehicles. For example, the tax will be 15% for vehicles reaching 10 years of economic life, 16% for 11 years, and 17% for 12 years—similarly, 20% for 15 years, and 25% for 20 years from registrations.
Tax could be increased by 5% if these are run by diesel and another 5% for vehicles registered in pollution-hit cities like Dhaka, Gazipur, Chittagong, and Narayanganj.
According to the draft Green Tax Policy, the Bangladesh Road Transport Authority (BRTA) will collect the taxes. The green tax will be applicable for both government and non-government vehicles, including motorbikes and cars.