Environment rights groups on Friday welcomed customs duty and tax exemptions for renewable energy and eco-friendly technologies in the proposed national budget for 2026-27 fiscal year (FY).
They said these exemptions given to renewable energy, solar accessories, and the electric vehicle (EV) industry will significantly accelerate a fair energy transition.
The government has included the energy sector in its list of ten priority sectors in the proposed budget for FY 27, aiming to foster a non-discriminatory and inclusive economy.
The budget wants to meet the national targets of generating 20 per cent of total electricity from renewable sources and producing 10,000 MW of solar power by 2030.
Reflecting the strategic importance of the sector, the allocation for the power and energy sector has been proposed at Tk 173.45 billion, marking a substantial increase from the previous fiscal year's allocation of Tk 169.52 billion.
"The strategic withdrawal of fiscal incentives for items like mounting structures, lithium cells, battery packs, and Battery Energy Storage Systems (BESS) after 30 June 2028 will effectively encourage local backward linkage industries and domestic manufacturers," read the statement.
The decision to retain a zero per cent tax rate until 2035 to incentivize cost-effective and green solar power production is exemplary. "Additionally, introducing a 5.0 per cent tax rebate for consumers against their solar electricity bills will decisively boost grassroots solar adoption and develop a people-centric energy sector."
Massive duty cuts on EV imports and charging infrastructure valued up to USD 25,000 from 93 per cent to 64 per cent, alongside a complete reduction of the total tax rate on EV chargers and charging stations from 39.75 per cent to zero, will ensure a nationwide transition towards eco-friendly mobility.
Furthermore, reducing the advanced income tax for BRTA registration and renewal of EVs from Tk 200,000 to a tiered structure, ranging from Tk 25,000 to Tk 100,000 based on motor capacity, is a massive stride forward, added the statement.
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