Rental power plant owners have urged the government to waive taxes at source and on their income to bring equality within the power sector.
Bangladesh Energy Companies Association (BECA), an association of the rental power companies, demanded the exemption in a letter to Finance Minister AMA Muhith.
According to the proposed budget, the rental power plant companies would have to pay a source tax of 6%, which is currently 4%.
It also requested removing section 52N of the Income Tax Ordinance1984 for canceling income tax on rental power companies completely.
The association president Mozammel Hossain in the letter said the exemption would help bring uniformity between the IPPs (independent power producers) and rental power companies. The IPPs are not subject to any tax at source. The government purchases a significant portion of electricity from quick rental plants rather than independent rental plants.
PDB purchases annually 1,405MW of electricity from rental and quick rental plants, and 1,066MW from independent power plants.
