Bangladesh targets faster solar expansion with import exemptions

Bangladesh’s Cabinet on Monday approved six-month tax and customs exemptions for machinery and equipment imported to build renewable solar power plants, a move aimed at accelerating installations and easing electricity shortages.

The decision, taken at a Cabinet meeting chaired by prime minister Tarique Rahman, exempts qualifying imports from customs duty above 1%, regulatory duty, supplementary duty, value-added tax, advance tax, and advance income tax.

Cabinet also approved resetting the price threshold for low-tier cigarettes to Tk65 (about $0.53) per 10 sticks from Tk62 (about $0.50), a step officials said could curb illicit trade and revenue losses.

Ministers also cleared a proposed investment protection agreement with Hong Kong, which ranks sixth among sources of foreign direct investment in Bangladesh. The 10-year pact may be amended three years after signing.