Bangladesh cuts solar equipment import tax to 1%

Bangladesh has reduced the tax burden on solar power equipment imports from 17% to 1% in an effort to accelerate renewable energy deployment and address domestic power shortages. The National Board of Revenue (NBR) announced that the measure will remain in effect for 180 days from the issuance of the statutory regulatory order.

The tax reduction aims to lower project costs and support the government’s goal of installing 4 GW of rooftop solar. Previously, while certain duties were exempted, imports were still subject to a 15% value-added tax and 2% advance income tax. The new 1% rate covers a wide range of components, including photovoltaic panels, mounting structures, inverters, lithium batteries, battery management systems, and monitoring equipment.

To qualify for the concession, importers must meet specific conditions. For lithium batteries, manufacturers must certify that the units are new and comply with the IEC 62619:2022 safety standard. Additionally, importers must provide undertakings from the Bangladesh Sustainable and Renewable Energy Association confirming that the equipment will be used exclusively for solar power development.