Duties on import of solar power equipment to go
Friday, 10 April 2009
S M Jahangir
All the existing duties on import of equipment for installation of solar power units are set to go in the next budget as the government wants to promote the renewable energy system for coping with the country's growing demand for electricity.
"The next budget is likely to see total withdrawal of the existing duties on import of equipment for installation of solar power units," an official source said.
The Finance Ministry has already sent a formal proposal to the National Board of Revenue (NBR) for removing all the duties that are now imposed on import of equipment used for setting up solar power units, official sources said. The Finance Ministry's proposal came following a directive from the prime minister.
"The main purpose of the proposed duty elimination is to promote the use of solar power system in the country through reducing its installation costs," said an official.
Currently, import duties ranging between 6.0 per cent and 60 per cent are applicable for import of solar-power equipment, the official added.
Officials said the installation costs of solar power units will drastically come down after the withdrawal of duties on the import of their equipment.
Although solar power system is in use in a limited scale in some parts of the country, especially in the offshore and forest areas, there remains a huge scope for its promotion in the country in a large scale.
The government has already adopted a 'Renewable Energy Policy', giving especial emphasis on the promotion of solar power units in the country.
All the existing duties on import of equipment for installation of solar power units are set to go in the next budget as the government wants to promote the renewable energy system for coping with the country's growing demand for electricity.
"The next budget is likely to see total withdrawal of the existing duties on import of equipment for installation of solar power units," an official source said.
The Finance Ministry has already sent a formal proposal to the National Board of Revenue (NBR) for removing all the duties that are now imposed on import of equipment used for setting up solar power units, official sources said. The Finance Ministry's proposal came following a directive from the prime minister.
"The main purpose of the proposed duty elimination is to promote the use of solar power system in the country through reducing its installation costs," said an official.
Currently, import duties ranging between 6.0 per cent and 60 per cent are applicable for import of solar-power equipment, the official added.
Officials said the installation costs of solar power units will drastically come down after the withdrawal of duties on the import of their equipment.
Although solar power system is in use in a limited scale in some parts of the country, especially in the offshore and forest areas, there remains a huge scope for its promotion in the country in a large scale.
The government has already adopted a 'Renewable Energy Policy', giving especial emphasis on the promotion of solar power units in the country.