Bangladesh sets 0% tax for solar sector until 2035, cuts import duties
Bangladesh has set a 0% tax rate for its solar power sector until 2035 and cut import-related duties on solar components to zero, according to pv magazine.
Finance Minister Amir Khosru Mahmud Chowdhury announced the changes while presenting the national budget in parliament on Thursday, issuing a notification that takes import duty, regulatory duty, supplementary duty, and advance tax on essential solar components down to 0%.
Consumers will also receive a 5% tax rebate on payments made against their solar electricity bills.
Chowdhury linked the measures to Dhaka's renewable targets. The government aims to source 20% of total electricity demand from renewable energy by 2030, and between 30% and 50% from clean energy by 2050.
Bangladesh currently operates 1,797 MW of renewable generation capacity. Solar accounts for 1,504 MW of that total, with the remainder split across other renewable sources.
Reaching the 2030 target from the current 1,797 MW base implies a substantial capacity build over the rest of the decade, with the wider 30% to 50% range for 2050 leaving room for later policy choices.
The budget package combines three measures aimed at the solar value chain: the headline corporate tax rate held at 0% through 2035, zero duties on imported components, and the 5% consumer rebate. Bangladesh has long depended on natural gas for most of its power generation, and pv magazine reported the new notification as part of the national budget presented Thursday.
Source: pv-magazine.com (opens in a new tab)1 sourcePermalink