The National Board of Revenue (NBR) has clarified tax and customs provisions for solar equipment imports, removing confusion over concessional treatment for commercial importers and facilitating faster clearance at ports.
The NBR instructed customs offices to apply uniform procedures for photovoltaic modules, panels, inverters and other solar equipment under the government’s renewable energy tax incentive scheme.
The clarification follows confusion over overlapping notifications carrying the same HS code for solar modules and panels. The NBR also corrected a clerical error in the HS code for solar inverters, saying eligible importers would not lose the benefit because of the mistake.
Manufacturing companies importing capital machinery for solar power plants will pay 1% customs duty, subject to conditions. Commercial importers will also pay 1% customs duty, along with 7.5% advance tax and 5% advance income tax, which can subsequently be adjusted under applicable tax rules.
The Bangladesh Sustainable and Renewable Energy Association, however, urged the government to consider waiving the existing 15% VAT to further reduce the cost of solar equipment and accelerate renewable energy deployment.
