Bangladesh is introducing a 10-year tax exemption package for renewable energy production — a move expected to help boost clean electricity generation, which is still hampered by high production costs.
The National Board of Revenue issued a notification for projects that will begin commercial operations by mid-2030.
The policy grants 100 percent tax exemption for renewable energy plants in the first five years, 50 percent in the next three years, and 25 percent in the following two years.
“Companies whose commercial production will start between July 1, 2025 and June 30, 2030, are exempted from the tax,” NBR chairman Abdur Rahman Khan said in a statement specifying the waivers.
The policy backtracks on the previous government’s 2023 decision to withdraw full tax exemptions for the renewable energy sector, which discouraged local and foreign investors.
Bangladesh aims to achieve its net-zero emissions goal by 2050, currently its clean electricity generation capacity is 1.38 GW or only about 5 percent of the total, which comes mostly from fossil fuels — mainly natural gas.
