Duty on solar power equipment imports cut again

The government has further reduced taxes and duties on imports of solar power equipment and parts. Importers will now pay taxes at a rate of just 1 per cent on eligible solar power equipment, a move aimed at expanding solar power generation amid energy and electricity shortages.

The National Board of Revenue (NBR) announced the decision in a notification signed by its acting chairman, Ahsan Habib, on Wednesday.
The new facility will cover key equipment and parts used in solar power projects.

Under the 2026-27 budget, the government had already withdrawn import duty, regulatory duty and advance tax on several solar power items.

However, importers still had to pay 15 per cent value-added tax (VAT) and 2 per cent advance income tax, leaving the total tax burden at 17 per cent.

Under the latest order, customs duty, regulatory duty, supplementary duty, VAT, advance tax and advance income tax have been waived, leaving importers to pay taxes at a rate of 1 per cent.

The new facility will remain in effect for 180 days from the date of the notification.

The latest order also extends the facility, subject to certain conditions, to commercial importers. Previously, commercial importers were not eligible for the tax benefit.

The NBR said the move would reduce the cost of solar power projects in Bangladesh. It expects the lower import taxes to help increase new power-generation capacity more quickly.