Economic Reporter :
Businessmen in the solar power sector urged the government to withdraw 10 percent import duty saying it will ultimately push up the cost of imported solar system by 37.5 percent and impede the government’s plan to generate 3,000 MW power from renewable energy by 2020.
They, however, said they are not against the promotion of the local solar manufacturing industries.
“But, solar panel manufacturers can be promoted by providing other supports like soft bank loan, reduced corporate tax, cash incentives on import and tax holiday, by not imposing tax on imported finished products,” said Dipal C Barua, president of Bangladesh Solar and Renewable Energy Association (BSREA).
Barua was addressing a press conference at the Jatiya Press Club on Monday.
Leaders of three other organisations– Idcol PO Forum, Bangladesh Solar Energy Society and Solar Mini Grid Association– were present at the press conference.
The leaders said there could be a tax gap between 5 and 7 percent between locally manufactured and imported solar panels for supporting local industries.
Dipal Barua claimed that all the solar-related programmes of the government, including solar home system, solar irrigation pump projects, solar distribution through TR-Kabikha project and also the projects under sustainable development goal (SDG) will be seriously hampered by the new tax structure.
Because, the new tax structure will push up the cost in an unreasonable manner, he said.
Dipal said the government, as a member of climate vulnerable countries forum (CVCF), has signed an agreement to use 100 percent renewable energy by 2050. But due to proposed import duty on solar panels, it will not be possible to achieve the goal.
He said the Prime Minister’s initiative of supplying electricity to every home has been increasing relentlessly through mini-grid projects. At present, nine mini grids have been installed while 25 are under implementation and another 25 are under process.
If the proposed budget is implemented, the project cost of mini-grid will go up by 50 percent, he added.
Businessmen in the solar power sector urged the government to withdraw 10 percent import duty saying it will ultimately push up the cost of imported solar system by 37.5 percent and impede the government’s plan to generate 3,000 MW power from renewable energy by 2020.
They, however, said they are not against the promotion of the local solar manufacturing industries.
“But, solar panel manufacturers can be promoted by providing other supports like soft bank loan, reduced corporate tax, cash incentives on import and tax holiday, by not imposing tax on imported finished products,” said Dipal C Barua, president of Bangladesh Solar and Renewable Energy Association (BSREA).
Barua was addressing a press conference at the Jatiya Press Club on Monday.
Leaders of three other organisations– Idcol PO Forum, Bangladesh Solar Energy Society and Solar Mini Grid Association– were present at the press conference.
The leaders said there could be a tax gap between 5 and 7 percent between locally manufactured and imported solar panels for supporting local industries.
Dipal Barua claimed that all the solar-related programmes of the government, including solar home system, solar irrigation pump projects, solar distribution through TR-Kabikha project and also the projects under sustainable development goal (SDG) will be seriously hampered by the new tax structure.
Because, the new tax structure will push up the cost in an unreasonable manner, he said.
Dipal said the government, as a member of climate vulnerable countries forum (CVCF), has signed an agreement to use 100 percent renewable energy by 2050. But due to proposed import duty on solar panels, it will not be possible to achieve the goal.
He said the Prime Minister’s initiative of supplying electricity to every home has been increasing relentlessly through mini-grid projects. At present, nine mini grids have been installed while 25 are under implementation and another 25 are under process.
If the proposed budget is implemented, the project cost of mini-grid will go up by 50 percent, he added.
