Business Report :
The government will offer 100% tax exemption for a decade to any renewable power generation companies starting commercial production from 1 July 2025 to 30 July 2030 in a bid to encourage a shift towards renewable power sources.
The tax exemption will be offered for 10 years from the date the company begins commercial production, an inter-ministerial meeting chaired by Finance Adviser Salehuddin Ahmed has decided on Thursday.
“This decision has been taken to encourage power generation from renewable energy sources. The initiative will help achieve the target of generating 4,000 MW of electricity from renewable energy by 2030,” Power and Energy Adviser Muhammad Fouzul Kabir told to the media.
Secretaries of the finance and power divisions were also present at the meeting titled “Tariff Rationalisation of Solar Panel”.
The meeting also decided to waive the existing 5% advance VAT on imported materials for producing renewable energy based on certification of the Power Division.
The National Board of Revenue (NBR) is likely to issue a notification in this regard soon, sources in the Power Division said.