The government has announced major tax incentives for the renewable energy sector, including zero import duties on key solar equipment, a move officials say could cut solar power generation costs by 25–30%.
In the proposed budget for the 2026–27 fiscal year, Finance Minister Amir Khasru Mahmud Chowdhury announced in parliament on Thursday that all import duties, regulatory duties, supplementary duties, and advance taxes on essential solar power components will be reduced to zero.
The government expects the removal of these taxes to attract more investment in the renewable energy sector and significantly lower production costs. Stakeholders estimate that the overall tax burden in the sector could fall by 30 to 70%.
The Bangladesh Sustainable and Renewable Energy Association said the decision would boost investor confidence and accelerate electricity generation in the future.
Its president, Mustafa Mahmud, said the initiative reflects the government’s commitment to renewable energy and would increase solar adoption in both industrial and residential sectors.
However, the proposal also suggests that tax exemptions for mounting structures, lithium cells, battery packs, and energy storage systems will be withdrawn after 2028 to encourage the development of local manufacturing.
Meanwhile, tax benefits for environmentally friendly battery production—particularly lithium-ion, sodium-ion batteries, and battery packs—have been extended until June 2030.
Finance Minister Amir Khasru Mahmud Chowdhury unveiled the proposed national budget for the 2026–27 fiscal year in parliament on Thursday.
The proposed budget, the first under the current government, has an outlay of Tk938,000 crore.