The government has proposed a revised environmental surcharge structure for private motor vehicles, requiring individuals owning multiple cars to pay additional fees under the budget proposal for the 2026–27 fiscal year.
The proposal was presented on Thursday in the National Parliament as part of the national budget. Finance Minister Amir Khusru Mahmud Chowdhury stated that environmental surcharges will apply to each vehicle owned by an individual, with rates varying according to engine capacity or kilowatt (kW) ratings.
Finance Minister Amir Khusru Mahmud Chowdhury said that individuals owning multiple motor vehicles will be required to pay a surcharge for each vehicle.
Under the proposed structure, vehicles with engine capacity up to 1,500cc or up to 75 kW will be subject to an environmental surcharge of Tk 25,000 per vehicle. For vehicles above 1,500cc up to 2,000cc (or above 75 kW up to 100 kW), the surcharge has been set at Tk 50,000.
Vehicles above 2,000cc up to 2,500cc (or above 100 kW up to 125 kW) will incur a surcharge of Tk 75,000, while those above 2,500cc up to 3,000cc (or above 125 kW up to 150 kW) will be charged Tk 150,000 per vehicle.
For vehicles above 3,000cc up to 3,500cc (or above 150 kW up to 175 kW), the surcharge has been fixed at Tk 200,000. Vehicles exceeding 3,500cc or 175 kW will face the highest surcharge of Tk 350,000.
The government has clarified that in cases where an individual owns multiple vehicles, only the lowest-surcharge vehicle will be exempt, while all other vehicles will be subject to the environmental surcharge. The tax will be collected at the time of vehicle registration or fitness renewal by the relevant authorities.
The proposed budget, titled “Journey Towards a Democratic, Humane and Inclusive Economy,” sets total expenditure at Tk 9.38 trillion for FY2026–27, against a projected revenue target of Tk 6,95,000 crore. This results in a budget deficit of Tk 2, 43, 000 crore, which the government plans to finance through both domestic and external borrowing.
