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Bangladesh’s National Board of Revenue (NBR) has reduced the overall tax burden on solar power equipment and components from 17% to just 1% to encourage renewable energy generation and make imports of related technology more affordable.
The NBR announced the measure in a press release on Wednesday, September 16, saying the facility would remain effective for 180 days from the date of publication of the relevant notification.
The move comes amid a global energy crisis and domestic electricity shortages, with the government seeking to accelerate the expansion of solar power capacity.
Under a notification issued on June 8 as part of the 2026-27 budget measures, key solar power equipment had already been exempted from import duty, regulatory duty and advance tax. However, a 15% value-added tax (VAT) and 2% advance income tax remained applicable, resulting in a combined tax burden of 17%.
Under the new policy, customs duty and regulatory duty above 1%, supplementary duty, VAT, advance tax and advance income tax will be fully waived. Importers will therefore pay an overall tax burden of only 1%.
Previously, the duty concession was not available to commercial importers of solar power equipment. The latest order extends the facility to commercial importers, subject to specified conditions.
The NBR expects the sharp reduction in import costs to encourage investment in solar power projects and accelerate the adoption of renewable energy technologies.
The measure is also intended to reduce dependence on fossil fuels and support more sustainable economic growth by making solar power equipment and technology more accessible.
