Solar energy, home appliance makers may get tax incentives

The government is set to unveil a substantial package of tax incentives for the solar-energy sector in the upcoming national budget as part of efforts to reduce dependence on fossil fuels and strengthen energy security amid continued volatility in global energy markets.

Local manufacturers of home appliances are also expected to receive import-duty benefits on raw materials to support the growth of import-substitution industries.

In addition, the existing VAT exemption for locally assembled computers and laptops is likely to be extended until 2030 from its current expiry date of June 2027.

Official sources said the proposed measures are expected to be announced on June 11 when Finance Minister Amir Khosru Mahmud Chowdhury presents the national budget in parliament.

Under the proposals, imports of solar panels and related equipment would enjoy significantly reduced tax rates until 2030. New investors in rooftop solar power projects would also be eligible for a 10-year tax holiday, provided they make their investments by 2035.

At present, the total tax incidence on the import of solar panels and associated equipment is as high as 60 per cent. The government plans to reduce this burden by lowering tax to 15 per cent in the next fiscal year in a bid to accelerate the adoption of renewable energy technologies.

The government is also considering extending tax exemptions on the import of raw materials for home appliance manufacturers until 2030. The existing facility is scheduled to expire in June 2026.

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