# NBR Plans to Double Taxes on Motorcycle, AC, and Refrigerator Manufacturers

> The National Board of Revenue (NBR) plans to double the tax rates for motorcycle, refrigerator, air conditioner, and compressor manufacturers, effective FY26, potentially canceling existing tax incentives set until 2032…

Published: 2026-09-20 · Desk: Latest · Source: The Business Standard

The National Board of Revenue (NBR) plans to double the tax rates for motorcycle, refrigerator, air conditioner, and compressor manufacturers from FY26, canceling existing incentives meant to last until 2032. Currently, these industries pay 10% corporate tax and 2% advance income tax (AIT) on machinery imports. If implemented, this change could raise an additional Tk1,000 crore annually. The NBR has already increased VAT on electronics to 7.5%, with discussions to raise it to 15%.

Industry experts warn that the tax hike will raise product prices, reduce demand, and deter investment. Companies like Walton and Runner, which relied on long-term tax benefits, fear the move will harm their businesses. Critics, including tax experts, argue this sudden policy shift undermines investor confidence and highlights Bangladesh's inconsistency in tax policies. While the NBR aims to meet IMF revenue targets, experts urge addressing broader investment challenges to mitigate negative impacts.

Original reporting: https://www.tbsnews.net/economy/nbr-now-plans-double-taxes-motorbike-ac-refrigerator-makers-1036571
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