The National Board of Revenue (NBR) announced a 10-year tax benefit to encourage investments in renewable energy-based power facilities. This initiative aims to promote clean energy generation.

Investors will enjoy a complete tax exemption if their plants start commercial production between July 1, 2025, and June 30, 2030. Specifically, they will receive a full tax exemption for the first five years. In the following three years, the NBR will tax only half of their income. After that period, the tax rate for renewable energy projects will be 25% for the next two years.

The NBR introduced this tax benefit at the request of the Power Division to stimulate private investment in clean energy and reduce reliance on fossil fuels. This marks the first time the NBR has offered tax benefits specifically for renewable energy projects.

Previously, the NBR provided tax breaks for privately run power plants, excluding coal-fired ones. In June 2023, the NBR extended a 12-year tax holiday for the income of privately run power plants that begin generating electricity before June 30, 2024.

On August 27, the interim government canceled 42 power plant projects, including 37 renewable facilities, which had a combined capacity of about 3,102 megawatts.

Source: The Daily Star