Govt plans longer-tenure tax incentives for 15 years

Days after restoring tax incentives for renewable energy-based power producers for 10 years to attract potential investors, the government is now set to extend the tax-breaks for five more years to 15 years.
Top government officials in a meeting Thursday decided that the power plants which will go into commercial operation between July 1, 2025 and June 30, 2030 will enjoy cent-percent tax exemption for 10 years instead of a previous order of five years.
The power plants will also enjoy 50-percent tax breaks for the next three years and 25 per cent for the two years thereafter.
Finance Adviser Dr Salehuddin Ahmed presided over the meeting on 'tariff rationalisation of solar panel', attended by energy adviser Muhammad Fouzul Kabir Khan. Present were also secretaries from relevant ministries and divisions.
The meeting, sources confirmed, also deiced to cut 5.0-percent advance value-added tax on import of goods related to renewable energy generation.
The National Board of Revenue (NBR) will issue a notification to this effect "soon".
On October 27, the government had announced the facility for a total period of 10 years.
Now such a decision comes ahead of floating tenders seeking investors for 10 solar power plants with each having 50-megawatt electricity-generation capacity.

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