Tax waiver for pvt power cos on terms

Private power-generation companies except for the coal-fired ones have got tax-waiver facility on certain conditions.
Such tax-waiver facility has been given under section 44 of the Income Tax Ordinance-1984, according to a statuary regulatory order (SRO), issued by the National Board of Revenue (NBR) on June 19.
The private power generators, which start commercial operation within 30 June 2024, will be enjoying tax waiver on their payable income until 30 June 2036 from the beginning of their business.
According to the SRO, foreign nationals working with the private power generation companies other than coal-fired ones will get waiver from their payable income from the date of their arrival in Bangladesh.
The facility will also be applicable to such companies' payable interest on foreign loans, it said.
Besides, such power companies will also get tax waiver from their payable royalties, technical know-how and technical assistance fees, according to the SRO.
The waiver will be applicable to the companies' capital gains on account of their share transfer.
On the other hand, different rates of tax waiver will be applicable to such private power generation companies that will go for power generation within 30 June 2025.
As per the rates, 100-per cent tax waiver will be applicable to them for first five years, 50-per cent waiver for next three years (sixth, seventh and eighth) and 25 per cent for next two years (ninth and tenth).
However, the companies entitled to this facility must maintain their accounts accordingly and comply with the provisions of the ordinance and other existing conditions of the 'Private Sector Power Generation Policy of Bangladesh', reads the SRO.

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