The government is bringing electricity producers under the tax on renewable energy. In the Individual Power Generation Policy (IPP) the generator does not have to pay any tax for up to 15 years. But a notification issued by the Department of Internal Resources said that the power plants which will come on stream between July next year and June 2030 will be exempted from 100% tax for the first five years of construction. They will get 50% tax exemption for the next three years and 25% tax exemption for the next two years.
This information was given in a notification issued on Sunday (October 27).
Those concerned say that apparently renewable energy power plants are being exempted from tax but they are being brought under tax after 5 years. But the IPP policy 1996 has a provision of tax exemption for all types of IPP power plants for 15 years. The previous government had considered reducing this period of tax exemption but could not do so due to the pleas of private power producers.
