Photo : BSS

DHAKA, Oct 30, 2024 (BSS)- Renewable energy producing companies are going to enjoy tax holiday facilities from next year.

The companies will get tax holiday benefits at different rates for the next ten years from the date of production.

The government has taken the decision to encourage more investment in this sector, NBR sources said. 

The National Board of Revenue (NBR) recently issued an order in this regard. NBR Chairman Md Abdur Rahman Khan signed the order. 

According to the government decision, tax holiday would be applicable for the companies which would go for production between July 1, 2025 and June 30, 2030.

As per the NBR notification, 100 percent tax waiver will be applicable up to the first five years of commercial production while tax exemption will be available at the rate of 50 percent for the next three years and 25 percent for the next two years.

This order will be effective from July 1, 2025. Under the Private Sector Power Generation Policy of Bangladesh, the power plant has to be constructed under Build Own Operate (BOO) method.

Currently there are tax holiday facilities for various sectors, such as agricultural machinery, automatic bricks, automobiles, bicycles, furniture, leather and leather products, household products like LED TVs, fridge TVs, toys, mobile phones, medicines, tires and textile machinery. 

Currently, various types of services in the IT sector are also enjoying tax exemption benefits. These include- software development, software application customisation, digital content development and management, digital animation development, website development, website services, overseas medical transmission services, call center services, etc. 

Some major infrastructure construction sectors also get tax holiday benefits.