Cabinet Approves Duty and Tax Exemption for Solar Power Equipment

The cabinet on Monday approved a proposal to provide duty and tax exemptions on the import of machinery and spare parts for renewable solar power generation.

The decision was taken at a cabinet meeting held at the Cabinet Room of the Jatiya Sangsad Bhaban, chaired by Prime Minister Tarique Rahman, according to a press release from the Cabinet Division.

Under the approved proposal, machinery and spare parts imported for establishing renewable solar power plants will be exempt from customs duty exceeding 1%, regulatory duty, supplementary duty, value-added tax (VAT), advance tax and advance income tax for 180 days from the date of issuance of the notification.

The government expects the move to accelerate the expansion of renewable solar power generation and help meet growing electricity demand, while easing the impact of power shortages and supporting uninterrupted industrial production.

The cabinet also approved a proposal to amend a notification setting the minimum price of low-tier cigarettes under the Value Added Tax and Supplementary Duty Act, 2012.

Under the amendment, the maximum retail price of low-tier cigarettes will be revised to Tk65 or above per 10 sticks, up from the existing threshold of Tk62.

The measure is also expected to curb the illegal cigarette trade and reduce revenue losses.

In another decision, the cabinet approved a proposal to sign a Promotion and Protection of Investment Agreement between Bangladesh and Hong Kong.

The proposed agreement aims to deepen existing economic ties and attract fresh investment, particularly in sectors such as garments and textiles.

According to the proposal, the agreement will provide necessary security and protection for investments from both sides while contributing to industrialisation, job creation, technology and knowledge transfer, and increased production capacity.

The agreement will remain in force for 10 years, with provisions allowing amendments three years after its signing.

It is also expected to create an effective institutional framework to boost foreign investment flows between Bangladesh and Hong Kong.