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import duties on EV charging equipment and lower taxes on various categories of electric vehicles.

These measures represent a significant shift from previous budgets and could improve the competitiveness of renewable energy technologies and electric mobility, Preoty said.

However, the CPD argued that fossil fuels continue to receive preferential treatment despite the new incentives.

According to the analysis, liquefied natural gas remains one of the least-taxed energy products in the country, enjoying full VAT exemptions and facing a total tax incidence of only 9.5 percent.

The think-tank also questioned the budget’s emphasis on expanding domestic coal production and advancing development activities at the Barapukuria and Dighipara coal fields.

The analysis further found that many components required for grid modernisation remain heavily taxed.

Transformers, conductors, transmission towers and electricity meters continue to face multiple layers of customs duty, VAT, advance income tax and regulatory duty, resulting in total tax incidence exceeding 60 percent in many cases.

Such high import costs could slow investments in transmission and distribution infrastructure at a time when Bangladesh needs a more flexible and modern grid to integrate larger volumes of renewable electricity, the CPD said.

The fiscal commitments do not appear as strong as the government’s political commitment to renewable energy, said CPD Research Director Khondaker Golam Moazzem.

“We heard many commitments in the budget speech, but when we examine the statutory regulatory orders, we find numerous conditions that make the incentives less attractive.”

The overall policy framework sends mixed signals, he said.

“On the one hand, we are offering incentives for green energy. On the other hand, our fiscal structure continues to favour fossil fuels. That suggests we still prefer fossil fuel-based energy beneath the surface.”