The National Board of Revenue (NBR) has extended a tax holiday by 12 years on the income privately-run power plants, except for coal-fired ones, that will start generation of electricity any time before June 30 next year.
This means the tax exemption can be enjoyed until June 30, 2036, according to an NBR notification issued on June 19.
The tax break is being offered since 2011 to support the government's goal to expand the country's energy production capacity to support the economy, which has been growing annually by around 6 percent over the last two decades.
Until January 2023, Bangladesh's total installed capacity was of 23,482 megawatts (MW), of which the private sector accounts for 44 percent, according to Bangladesh Economic Review 2023.
There are another 20 projects of private power producers under construction having a production capacity of 5,047 MW, according to the review.
