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The National Board of Revenue has extended the tax exemption facility till 2036 to the private sector power generation companies which will go into commercial operation between June 30, 2024 and June 30, 2025.
The income tax wing of the revenue board on Tuesday issued a gazette notification in this regard.
It said that private power generation operators must maintain account as per the directives of Income Tax Ordinance and also follow the directives of Private Sector Power Generation Policy of Bangladesh for availing the benefits.
According to the notification, the private power generation companies, except for coal-based ones, which will come into operation by June 30, 2024 to June 30, 2025 will be exempted from payment of income tax on their incomes from power plants, on payable interest against foreign loans, on royalties, technical know-how and technical assistance fee and capital gain on transfer of shares.
Foreign employees at the companies will also enjoy income tax exemption for three years from the date of their arrival in Bangladesh, it said.
The power plants would enjoy full exemption from payment of income tax in the first five years of commercial operation, 50 per cent in the sixth, seventh and eighth year and 25 per cent in the ninth and 10th year, said the notification.
The revenue board first offered the tax holiday benefits for the private power plants, except for coal-based ones, in 2013 on condition that they would begin commercial operation by December 31, 2014, and the 10 years’ tax exemption at reduced rates for plants who would begin commercial operation from January 2015 and afterwards.
Nineteen private power plants are scheduled to come into operation by 2025, according to the Bangladesh Power Development Board web site.
(NA)
