Bikers have submitted a memorandum to the National Board of Revenue (NBR), objecting to a possible advance income tax on motorcycles based on engine capacity (CC) in the upcoming budget for the 2026-27 fiscal year, reports bdnews24.com.
On Sunday morning, a group of bikers staged a demonstration in front of the NBR office in Agargaon, Dhaka, carrying placards. A five-member delegation later entered the building and submitted the memorandum.
One of the representatives, AKM Imon, told journalists: "Overall, our discussion was cordial and constructive. They responded positively, and we also spoke respectfully.
"What we wanted to convey was our concern regarding the additional income tax. We presented various arguments and explanations, and they also tried to explain their reasoning."
Imon said, "The person who received our memorandum is a customs policy official. He and the others acknowledged that the large figures being reported in the media - like Tk 10,000 or Tk 5,000 - may not be reasonable for bikers, and they have taken that into consideration.
"At the same time, they accepted our memorandum seriously, and we clearly stated that it is not possible for us to pay any additional amount."
Currently, battery-powered auto-rickshaws and motorcycles are not subjected to income tax. However, the NBR has proposed introducing advance income tax on them from the next fiscal year.
Last Thursday, officials from the NBR's policy division met the prime minister at the Secretariat regarding the overall budget proposals on taxes and exemptions.
According to discussions in the meeting, motorcycles up to 110cc would remain tax-free, while motorcycles between 111cc and 125cc would be charged Tk 2,000, those between 126cc and 165cc Tk 5,000, and motorcycles above 165cc Tk 10,000 annually as advance income tax.
During the meeting, the prime minister reportedly commented that the proposed motorcycle tax rates were "too high" and instructed officials to revise them to Tk 1,000 for motorcycles between 111cc and 125cc, Tk 3,000 for 126cc to 165cc, and Tk 5,000 annually for motorcycles above 165cc, according to an official who spoke to bdnews24.com.
Biker Imon said, "During the discussion, it was mentioned that we allegedly do not pay taxes frequently. But we do pay taxes when purchasing motorcycles, we pay annually, and also during registration. Officials assured us not to be overly concerned and said that the situation is not exactly as it is being portrayed in the media."
He added, "We have submitted our memorandum. They are human beings as well, and they have considered the matter. Through coordination and mutual understanding between both sides, a solution will emerge. Even if any tax is imposed, it will not be something that becomes a burden on us.
"However, we remain firm in our demand that we will not pay any income tax. Our position is clear - we will not pay income tax to ride motorcycles in Dhaka city."
Advance income tax is mainly handled by the income tax wing, while the bikers said they discussed the issue with officials from the income tax policy department.
