Government proposes duty and tax exemptions for eco-friendly battery industry

The government has proposed duty and tax exemptions on the import of raw materials and components used in manufacturing lithium-ion and sodium-ion batteries as part of efforts to support the growth of an environmentally friendly battery industry and strengthen the renewable energy sector.

Finance Minister Amir Khosru Mahmud Chowdhury announced the proposal while presenting the national budget for the 2026–27 fiscal year in Parliament on Thursday.

Under the proposal, a new notification will allow duty- and tax-free imports of materials required for producing lithium-ion and sodium-ion batteries until June 30, 2030, with the aim of encouraging local manufacturing.

The finance minister said the government also plans to gradually phase out concessions on related products, including mounting structures, lithium cells, battery packs and energy storage systems, after June 30, 2028.

"To encourage domestic production of related items such as mounting structures, lithium cells, battery packs and energy storage systems, I propose withdrawing these concessions after June 30, 2028, with the expectation that local production will meet demand by then," he said.