No duty, tax being imposed on production of solar power

In the budget about to be passed in the National Parliament, a proposal has been made to bring the customs duty and tax rates down to zero in certain special sectors. Among these, the commercial solar power generation sector is one of the most prominent.

According to sources from the Ministry of Finance, these incentives are being provided with the aim of increasing the use of renewable energy and reducing reliance on fossil fuels.

As per the proposal, a zero percent income tax benefit may be granted to the commercial solar power generation sector. At the same time, a 5 percent discount on the electricity bills of retail consumers using solar power is also under consideration.

To strengthen the renewable energy system, there is a plan to grant duty and tax exemptions until 2030 on the import of raw materials used in manufacturing lithium-ion and sodium-ion batteries, as well as battery packs. Currently, the total tax rate on these products is around 60 percent.

Officials concerned with the Ministry of Finance stated that the government's primary objective is to encourage investment in green energy to ensure the country's energy security amid the volatility of the global energy market.

Additionally, in the budget, the government has proposed extensive duty and tax concessions on the import of electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and charging infrastructure.

The National Board of Revenue stated that such a plan has been designed to increase the use of eco-friendly vehicles.

Meanwhile, the upcoming budget has proposed increasing taxes on the import of certain fossil fuel-dependent vehicles.

Currently, the total tax burden on the import of electric vehicles or EVs is around 93 percent. It has been proposed to reduce this to 64 percent for electric vehicles valued up to 25,000 US dollars, and to 80 percent for vehicles valued up to 50,000 US dollars.