Most solar equipment can be imported at 1% duty under new order

Import taxes on those components had previously ranged from 23% to 64%.

The government has once again provided major import tax relief on almost all solar equipment used for renewable energy generation.

According to an order issued by the Internal Resources Division (IRD) of the finance ministry on 16 September, all solar equipment imported for industrial use will be subject to a 1% duty, with the existing 15% VAT and 2% advance tax waived.

For non-industrial commercial importers, almost all solar equipment and components will also be eligible for import at a 1% duty, except for a few components that are manufactured locally.

Import taxes on those components had previously ranged from 23% to 64%.

The facility will remain in effect for six months, according to the order signed by Ahsan Habib, acting secretary of the IRD and chairman of the National Board of Revenue (NBR).

An NBR statement said the measure would reduce the cost of solar power projects, accelerate the expansion of new power-generation capacity, reduce dependence on fossil fuels, and further strengthen the country’s energy security and sustainable economic development.

Source: The Business Standard