Govt extends tax break for renewable power by 5 years
The investors who will start commercial production from July 2025 to June 2030 will enjoy tax breaks on income from renewable energy power plants
The National Board of Revenue (NBR) has extended the tax exemption period for renewable energy-based power plants by five years to attract potential investors in that area.
On 26 June 2023, Sheikh Hasina government withdrew the full tax break in this sector and introduced a tax exemption for ten years for investment within June 2025.
According to a statutory regulatory order (SRO) of NBR issued today (29 October), the investors who will start commercial production from July 2025 to June 2030 will enjoy tax breaks on income from renewable energy power plants.
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"The investors will enjoy a 100% income tax break for the first five years of starting the commercial production, a 50% exemption on income derived from this power sector for the next three years, and a 25% exemption for the subsequent two years," according to the order.
The tax exemption has been offered since 2011 to support the now-deposed government goal of expanding the country's energy production capacity.
