Advance income tax on commercial motor vehicles

The budget for the fiscal year 2026-27 has proposed to increase the advance income tax rate on commercially operated motor vehicles.

At the same time, initiatives have been taken to bring several new types of vehicles under the tax.

This information was given as part of the budget proposal on Thursday (June 11).

According to the proposal, the advance tax on various vehicles including buses, trucks, minibuses, covered vans, prime movers, pickups, human haulers, autorickshaws and taxi cabs is being increased by one and a half to two times.

For example, the tax on a 52-seater bus has been increased from Tk16,000 to Tk25,000. In the case of minibuses, there is a proposal to increase it from Tk11,500 to Tk20,000, and in the case of coasters, it is proposed to increase it from Tk16,000 to Tk25,000.

In addition, the tax on trucks with a capacity of 5 to 20 tonnes has been proposed to be increased from Tk16,000 to Tk30,000 and for trucks over 20 tonnes, it has been proposed to increase it from Tk16,000 to Tk50,000.

In the next fiscal year, advance tax payment at a prescribed rate may be made mandatory while registering or renewing the fitness of a motor vehicle. No vehicle can be registered or renewed without a tax payment invoice.

The new proposal brings various heavy and special purpose vehicles including cranes, tractors, dump trucks, covered vans, cargo vans, excavators, dredgers, rollers and concrete mixers under separate tax. In these cases, there is a proposal to set an advance tax of up to Tk50,000.