Excelerate Energy gets income tax exemption

The National Board of Revenue (NBR) has exempted income tax from the country's first Floating LNG Storage and Regasification Unit (FSRU) for the next 15 years.

The income tax wing of the NBR issued a Statutory Regulatory Order (SRO) dated October 30, exempting the tax at source.

The US-based Excelerate Energy Bangladesh Ltd (EEBL) is constructing the floating LNG terminal at Moheshkhali in Cox's Bazar.

The FSRU will have a capacity to regasify imported liquefied natural gas (LNG) up to 500 million cubic feet par day (mmcfd).

EEBL will transfer the terminal to the Petrobangla after 15 years of operation.

The company will not have to deduct tax at source on the payment to any of the members of legal owners, disponent owner and terminal company group of the FSRU.

However, the tax benefit will be valid only for implementation of the project titled 'Floating LNG Storage and Regasification Facility'.

The EEBL, the contractor company, is building the unit on build-own-operate and transfer (BOOT) basis as per 'Speedy Supply of Power and Energy Act (special rules) 2010'.

The 'terminal company' will have to keep its books of accounts properly and submit tax returns as per section 75 of the income tax law to the authority.

Officials said that the terminal company will hire equipment, including vessels, for the FSRU.

The exemption will also cover the fare given to the vessel company, known as disponent owner of vessels.

Local firm Summit LNG Terminal Company, a concern of Summit Group, will also construct a floating LNG terminal at Moheshkhali.

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