Tax holiday for new power plants till 2036
The private power plants that would start operation before June 2024 will not have to pay any taxes on their income earned till 30 June 2036, according to a gazette issued by the finance ministry on 19 June.
Moreover, income of the foreigners working in the aforementioned power plants, interest on their foreign debt, royalties, technical know-how and technical assistance, and capital gains during the transfer of its shares have also been exempted from taxes, according to the gazette.
Companies that will start power generation commercially after June 2024 but before 2025 will not get full tax exemption till 2036. Those companies will get 100% tax exemption for the first five years, half for the next three years, and 25% for the next two years.
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According to Bangladesh Power Development Board, there are 24 companies which are scheduled to start generating power by 2024.
