TDS Desk

“The initiative will help achieve the target of generating 4,000 MW of electricity from renewable energy by 2030,” Power and Energy Adviser Muhammad Fouzul Kabir, who also attended the meeting, said.

The government will offer 100% tax exemption for a decade to any renewable power generation companies starting commercial production from 1 July 2025 to 30 June 2030 in a bid to encourage a shift towards renewable power sources.

The tax exemption will be offered for 10 years from the date the company begins commercial production, an inter-ministerial meeting chaired by Finance Adviser Salehuddin Ahmed has decided today (14 November).

“This decision has been taken to encourage power generation from renewable energy sources. The initiative will help achieve the target of generating 4,000 MW of electricity from renewable energy by 2030,” Power and Energy Adviser Muhammad Fouzul Kabir, who also attended the meeting, said.

The latest government decision in this regard comes following a National Board of Revenue (NBR) notification issued on 29 October, which stated that the renewable power producers going commercial between the period of July 2025 and June 2030 will get a 100% tax exemption for five years.

The government has now decided to extend the duration for another five years.

Power Division sources said the government is offering the tax exemption for renewable power producers under Section 76 (1) of the Income Tax Act 2023.

After the first 10 years, the companies will be further granted a 50% tax exemption for the next three years and another 25% tax exemption for two years after that.

Secretaries of the finance and power divisions were also present at the meeting titled “Tariff Rationalisation of Solar Panel”.

The meeting also decided to waive the existing 5% advance VAT on imported materials for producing renewable energy based on certification of the Power Division.

The National Board of Revenue (NBR) is likely to issue a notification in this regard soon, sources in the Power Division said.