All companies in commercial production of renewable energy based power plants are exempted from income tax for up to 15 years. The National Board of Revenue (NBR) issued a notification on Thursday giving tax benefits subject to conditions. It was signed by the chairman of the organization. Abdur Rahman Khan.
Renewable energy refers to hydroelectric, wind and solar power plants. Earlier, the tax exemption facility was given for 10 years last October, but this time it has been increased. As a result, companies going into production between July 1, 2025 and June 30, 2030 will get tax exemption for 15 years.
As per the National Board of Revenue (NBR), sub-section (1) of Section 76 of the Income Tax Act, 2023, tax exemption has been granted to all individuals or companies producing electricity based on renewable energy, according to the NBR notification. Companies whose commercial production starts between July 1, 2025 and June 30, 2030 will get tax exemption subject to conditions.
According to the notification, 100% tax exemption will be available for the first 10 years (first to 10 years) from the start of commercial production. 50% tax exemption for the next 3 years and 25% tax exemption for the next 2 years.
The conditions include — compliance with all provisions of the Income Tax Act. All the conditions stipulated in the Private Sector Power Generation Policy of Bangladesh must be fulfilled. Companies should be governed according to the system described in the policy. This exemption will be effective from July 1, 2025.
