Will raising costs help regulate battery-powered rickshaws

Battery-powered rickshaws and easybikes have become a public menace on the streets of Dhaka. The overwhelming presence of these engine-powered three-wheelers has all but paralyzed the city’s traffic system. Competing with heavy vehicles like buses and trucks, these lightweight vehicles often dominate the roads, occupying large sections of public thoroughfares. Their drivers typically ignore traffic laws, leading to frequent and unpredictable accidents.

This alarming scenario is increasingly visible across the country, though the situation is more severe in urban areas than in rural ones—especially in terms of accident rates. However, the proposed national budget for 2025–26 fiscal year has delivered what some may see as bad news for battery-rickshaw operators. The customs duty on 1,200-watt DC motors, used in battery-powered rickshaws, is set to rise from 1 percent to 15 percent. As a result, the cost of manufacturing these vehicles will increase.

Finance Adviser Dr Salehuddin Ahmed presented the proposed budget for the upcoming fiscal year to the nation via Bangladesh Television on Monday (June 2). The proposed budget stands at Tk 7.90 lakh crore—Tk 7,000 crore less than the current year’s budget. A key highlight was the announcement of a sharp increase in the customs duty on 1,200-watt DC motors used in battery-powered rickshaws—from 1 percent to 15 percent.

Notably, battery-powered rickshaws have become synonymous with dangerous transport across Dhaka and the rest of the country. In response to the unchecked rise of these vehicles, the government has taken steps to increase their cost in an attempt to curb their proliferation.

These vehicles have no legal basis whatsoever—no regulation regarding their structure, registration, or roadworthiness. As a result, anyone can manufacture or assemble them at will. Given the country’s high unemployment rate, many individuals—lacking other job opportunities—purchase, build, or rent these vehicles and start operating them on the roads.

Most of these drivers lack the education or skills required to navigate traffic safely. Since battery-powered rickshaws require far less physical effort than traditional pedal rickshaws, even those who are not physically fit, or who would otherwise be unqualified, are drawn to this form of work. This has led to increased traffic congestion, particularly in urban areas like Dhaka, and a rise in road accidents. Despite multiple attempts to ban these vehicles, such efforts have failed due to strong protests from drivers. With their numbers now significantly high, they have the power to paralyze entire cities through demonstrations.

In this context, the cost of battery-powered rickshaws has been increased in the proposed budget. But the key question remains: Will raising the cost help regulate these vehicles? Meanwhile, a technical team from BUET has developed a new “safe design” for battery-powered rickshaws, and the Dhaka North City Corporation has announced plans to permit rickshaws built according to this new design to operate in the city. This effectively means that battery rickshaws won’t be banned in Dhaka; instead, it may trigger a rush to manufacture vehicles based on the new model. Even with the customs duty hike—from 1 percent to 15 percent—it's unlikely this will significantly curb the proliferation of such rickshaws. The increased cost may lead to protests from drivers or simply result in higher passenger fares. Still, as an initial measure, its effectiveness will only become clear over time.

Although accurate data is lacking, various sources suggest that currently around 6 million battery-powered rickshaws or easy bikes are operating across Bangladesh. If left unchecked, their numbers will likely continue to rise in the future. This will severely worsen traffic congestion, reduce productive working hours, and ultimately have a negative impact on individual incomes and the country’s overall economic growth.

Therefore, without a permanent and structured regulatory framework, merely increasing the cost of these vehicles is unlikely to bring significant control. Nonetheless, the government must remain vigilant and strict to ensure that government initiatives remain effective.