NN Online:
The Bangladesh government has introduced a tax holiday for renewable energy power generation companies, aiming to drive more investment in the country’s green energy sector. The tax incentive provides benefits over a ten-year period, designed to support long-term growth and development of renewable energy projects.
The National Board of Revenue (NBR) recently issued an official order outlining the terms of the tax holiday, signed by NBR Chairman Md Abdur Rahman Khan. Companies that begin production between July 1, 2025, and June 30, 2030, will be eligible for the tax exemptions, reports UNB.
According to the NBR notification, eligible companies will enjoy a 100 per cent tax exemption for the first five years after beginning production. For the following three years, the exemption rate will be 50 per cent, and in the final two years, it will be 25 per cent. This tax holiday will come into effect on July 1, 2025.
To qualify, power plants must be constructed under the Build Own Operate (BOO) model as stipulated in Bangladesh’s Private Sector Power Generation Policy.
Currently, tax holidays are available in various sectors, including agricultural machinery, automated brick production, automobiles, bicycles, furniture, leather goods, household electronics like LED TVs and refrigerators, toys, mobile phones, pharmaceuticals, tires, and textile machinery.
Additionally, the IT sector enjoys tax exemptions across multiple services, such as software development, digital content creation, website services, call center operations, and overseas medical transmission services. Select large-scale infrastructure projects also benefit from tax holiday incentives.